Twitter is pushing again towards billionaire Elon Musk’s allegations that the corporate “hoodwinked” him into signing a $44 billion deal to buy the social media platform.
Musk, who’s making an attempt to again out of the deal, filed a countersuit towards Twitter final week in Delaware’s Court docket of Chancery. In July, Twitter sued Musk to implement the merger settlement and alleged that the billionaire is making an attempt to get out of buying the corporate as a result of his private wealth has fallen and the acquisition has thus grow to be dearer.
Musk alleges that Twitter failed to supply him info to confirm that fewer than 5% of Twitter’s greater than 220 million each day customers have been spam-focused or faux, an necessary metric for understanding Twitter’s adverts enterprise. The billionaire claims Twitter misrepresented or omitted info that will make clear the corporate’s worth.
In a 127-page authorized submitting in response to Musk’s allegations, Twitter referred to as Musk’s claims “implausible and opposite to truth because it sounds.” Twitter shared the doc publicly in a tweet on Thursday, escalating its authorized feud with the billionaire.
“When Twitter sued to implement its rights and uncovered the weak spot of these causes, Musk spent weeks developing with extra supposed causes — the Counterclaims — which provide up a completely new set of excuses for his breach. The Counterclaims are a made-for-litigation story that’s contradicted by the proof and customary sense,” the authorized submitting says.
Twitter mentioned it by no means misled Musk as a result of the corporate had already disclosed there have been limitations to its estimates of spam or faux accounts and that the quantity may very well be greater. Musk claims that the variety of spam or faux accounts is at the least 10%, however Twitter mentioned “Musk is just not measuring the identical factor as Twitter and even utilizing the identical knowledge as Twitter.”
Musk lawyer Mike Ringler did not instantly reply to a request for remark.
Twitter and Musk are anticipated to move to trial on Oct. 17 if they do not attain a settlement. Twitter’s shareholders are scheduled to vote on the deal in a particular assembly on Sept. 13.