Tech

Musk says Twitter engaged in fraud in dispute over fake accounts


In a lawsuit, Twitter accused Elon Musk of abandoning plans to buy the company because the stock market turmoil made the deal more difficult for him. But countering in the legal filing, Musk said that it was Twitter that caused the $44 billion acquisition.

Musk argued that Twitter concealed the true number of non-authenticated accounts on its platform, accusing the company of fraud. Mr. Musk’s legal team insists such accounts account for at least 10 percent of Twitter’s daily active users who view ads, Mr. Musk’s legal team asserts, reiterating the concerns he immediately expressed. after signing the agreement in April. Twitter has maintained that this number is under 5%.

“Twitter misreported the number of fake and spam accounts on its platform, as part of a scheme to mislead investors about the company’s prospects,” Musk’s attorney wrote. “Twitter’s revelations have slowly unraveled, with Twitter frantically shutting down information in a desperate attempt to prevent Musk’s parties from uncovering his fraud.”

Last Friday’s secret files, parts of them revealed on Thursday by Twitter in a response that denied Musk’s many claims, it was his first broad response to the protracted legal battle between the social media company and one of the world’s richest people. A trial is set up in October.

“His claims are in fact inaccurate, legally inadequate and commercially irrelevant,” Bret Taylor, Twitter’s chairman of the board, said in a statement Thursday. .

Musk began buying back shares of Twitter earlier this year and by April had accumulated a majority stake in the company. He refuses Offer to join Twitter’s board of directors, instead, launched a quick and aggressive takeover attempt. But once Twitter agreed to the acquisition, Mr. Musk began to express doubts. In July, he pointed out that he no longer wants to buy the company.

Twitter sued him at the Delaware Chancery Court in an attempt to force the acquisition through. Twitter announced that he lost interest in the deal as the market plunged and shares of Twitter and electric car maker Tesla, which is Mr. Musk’s main source of wealth, fell.

“Musk refuses to honor its obligations to Twitter and its shareholders because the agreement he signed no longer serves his personal interests,” Twitter said in a statement. litigation.

Over the past few days, the company has linked up with banks, financial partners and Musk associates summonsRequesting contact information about the deal could shed light on why Mr. Musk decided to walk away.

The deal includes a “specific performance” clause that allows Twitter to sue to force the deal through as long as the debt the billionaire paid for the acquisition remains intact. But Mr Musk could have to pay a $1 billion fee to get out of the deal if his funding fails.

Mr. Musk asserted that Twitter was flooded with fake accounts and that the company misled him about the true number of impostors on its platform. Fake accounts are used to spread spam or manipulate Twitter’s service by falsely amplifying trends and are often automated rather than run by real people.

This is an evolving story. Check for updates again.





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