Elon Musk accuses Twitter of fraud in over $44 billion deal – Twitter summons Binance and other firms – Bitcoin Featured News


Tesla CEO Elon Musk has accused Twitter of fraud in his counterclaim against the social media company. Twitter sued the billionaire to force him to go through a $44 billion deal to buy the platform. “The parties hold their counterclaims for breach of contract and cancellation on the grounds of Twitter fraud.”

Elon Musk’s legal battle with Twitter intensifies

Tesla and Spacex CEO Elon Musk has submitted a file counter suit against Twitter after the social media giant sued to end a $44 billion deal to buy the platform. The Musk suit raised on Thursday and published on Friday states the following:

This action arises from Twitter’s misrepresentations regarding the state of the company and the “key metrics” that Twitter uses to assess the number of users on its platform.

“Twitter has been miscalculating the number of fake accounts and spam on its platform, as part of its scheme to mislead investors about the company’s prospects by focusing on hundreds of millions of alleged MDAU accounts,” Musk claimed. The social media company defines daily active monetized users (mDAU) as “users who log in and access Twitter on any given day through Twitter.com or Twitter applications that can display ads”.

The counterclaim describes: “Following the signing of the merger agreement, the Musk parties learned troubling facts that cast serious doubt on Twitter’s representations.”

Musk’s lawyers noted that “while Twitter is asking the court to force the closure of Musk’s parties due to Twitter misrepresentations and contract violations, Musk’s parties are seeking to mitigate the grave injustice resulting from such an outcome,” explaining:

Accordingly, the Musk parties are filing their counterclaims for breach of contract and cancellation on the grounds of Twitter fraud.

Twitter filed a series of responses to Musk’s counterclaim Thursday, accusing the Tesla CEO of picking numbers and misrepresenting how the online advertising system works.

Twitter board member Brett Taylor tweeted in response to Musk’s allegations:

Twitter has provided a response to Mr. Musk’s counter-claims. His claims are factually inaccurate, legally insufficient, and commercially irrelevant. We look forward to the trial in Delaware, Delaware Court.

Twitter has summoned crypto exchange Binance and more than a dozen Musk advisers and potential lenders as part of its lawsuit against the Tesla CEO. In May, Musk revealed that he had secured funding from 18 companies to buy Twitter, including Binance.

Other companies and individuals summoned by Twitter include Factorial Funds, Benefit Street, Bandera Partners, Founders Fund Growth II Management, and Citadel CEO Ken Griffin, Tesla and Spacex. The subpoenas demand the surrender of documents and correspondence that support or refute Musk’s accusation that Twitter did not report the number of fake accounts or spam on its platform.

Musk formally terminated a $44 billion deal to buy the social media giant last month, alleging that “Twitter is in violation of multiple clauses of that agreement.” The billionaire’s lawyer noted that Twitter made “materially inaccurate representations,” particularly in relation to the company’s claim that less than 5% of its mDAU accounts are fake or spam.

Twitter responded by suing Musk last month to force the Tesla chief to proceed with the acquisition, claiming that “Musk is refusing to meet his obligations to Twitter and its shareholders because the deal he signed is no longer in his personal interests.” The case is scheduled to go to trial on October 17.

Do you think Twitter or Elon Musk will win this case? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found bitcoin in 2011 and has been a missionary ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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