Twitter rejects Musk’s claims that he was deceived

Elon Musk’s Twitter profile is seen on a smartphone placed on the Twitter logos printed in this illustration taken on April 28, 2022. REUTERS/Dado Ruvic/Illustration // File Photo

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New York (Reuters) – Twitter Inc (TWTR.N) On Thursday, he dismissed Elon Musk’s allegations in a Delaware court that he was tricked into signing a deal to buy the social media company, saying it was “unreasonable and contrary to the truth.”

Musk made the allegations in a counter-suit filed with a seal last Friday, and it was announced Thursday.

“According to Musk, Twitter – the billionaire founder of several companies, advised by Wall Street bankers and lawyers – was duped into signing a $44 billion merger agreement. This story is as implausible and untrue as it sounds,” released by Twitter on Thursday said.

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Twitter profiles are the latest launch in what is shaping up to be an increasingly intense legal showdown between the world’s richest person and the social media giant.

Both sides head to court on October 17 after Musk sought to abandon his deal to acquire Twitter over what he says is misrepresentation of fake accounts on the site.

The San Francisco-based company is trying to force Musk to pursue the deal and accuses him of sabotaging it because it no longer serves his interests.

A representative for Musk did not immediately respond to a request for comment.

In counterclaims published Thursday, Musk accused Twitter of ramping up efforts to conceal the true number of its users, as the market plummeted.

“With a long bull market coming to a close, and the tide was running out, Twitter knew that providing Musk’s parties with the information they requested would reveal that Twitter was swimming naked,” says the counterclaim.

On Twitter, Musk responded that Musk did not “demand evidence” for the “untrue” allegations.

‘Fact-free’ allegations

Musk also claims that “Twitter’s misrepresentations go much deeper than just providing incorrect numbers” about spam or fake accounts.

While “Twitter is touting 238 million monetized “daily active users,” those users who actually see ads” are about 65 million fewer, says Musk in the counterclaims.

Twitter maintains that its SEC disclosures about monetized daily active users were accurate.

Musk, CEO of Tesla Electric Vehicles (TSLA.O)offered to buy Twitter for $54.20 a share in April, saying it believed in its potential as a global platform for free speech.

But he soured on Twitter as his share price delayed his takeover bid, and began expressing his suspicions that bot and spam accounts account for less than 5% of users.

Musk sought to back off on July 8 without paying $1 billion in dismantling fees, citing Twitter’s failure to provide details of bot and spam accounts. Twitter sued him four days later.

Earlier this week, Twitter issued dozens of subpoenas to banks, investors and law firms that supported Musk’s takeover bid, while Musk issued subpoenas to Twitter advisors Goldman Sachs and JP Morgan regarding their work.

Legal experts said Twitter’s requests indicate the company wants to know why Musk has turned against it, or whether he has reneged on his commitment to obtaining adequate funding.

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Additional reporting by Anirban Sen and Greg Rumiliotis; Editing by Deepa Babington

Our criteria: Thomson Reuters Trust Principles.

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