Tesla CEO Elon Musk has sued Twitter for fraud in a countersuit against the social media company.Twitter has filed suit against the billionaire in a $44 billion acquisition of its platform The lawsuit was filed to force the $44 billion deal.” The Mask parties file counterclaims for breach of contract and rescission based on Twitter’s fraud.”
Elon Musk and Twitter’s legal battle rages
after Tesla and SpaceX CEO Elon Musk sued social media giant Twitter for terminating his $44 billion platform acquisition deal filed acounterclaimagainst Twitter. Musk’s counterclaim, filed Thursday and published Friday, states.
This lawsuit stems from Twitter’s misrepresentations to the Musk parties regarding the status of the company and the “key metrics” Twitter uses to assess the number of users on its platform.
“Twitter had been falsely counting the number of fake and spam accounts on its platform as part of a plan to deceive investors about the company’s prospects by focusing on what it purported to be hundreds of millions of mDAU,” Musk claimed. The social media company defines a monetizable daily active user (mDAU) as “a user who logs in and accesses Twitter on a given day through Twitter.com or a Twitter application that can display ads.”
The counterclaim states.” After signing the merger agreement, however, the Musk parties learned a troubling fact that cast serious doubt on Twitter’s representations.”
“While Twitter asks the court to force the Musk parties to close over Twitter’s misrepresentations and breach of contract, the Musk parties seek relief from the gross unfairness of such a result,” Musk’s attorney noted and elaborated.
Accordingly, the Mask Parties bring counterclaims for breach of contract and rescission based on Twitter’s fraud.
Twitter filed a series of counterclaims against Musk’s counterclaims on Thursday, accusing the Tesla CEO of arbitrarily picking numbers and misrepresenting how the online advertising system works.
Twitter board member Brett Taylor tweeted in response to Musk’s allegations.
Twitter filed a response to Mask’s counterclaim. His allegations are factually incorrect, legally insufficient, and commercially irrelevant. We look forward to a trial in the Delaware Chancery Court.
Twitter subpoenaed crypto exchange Binance and more than a dozen of Musk’s advisors and loan applicants as part of its lawsuit against the Tesla CEO.In May, Musk purchased Twitter, including Binance and revealed that he had secured funding from 18 companies to.
Other companies and individuals subpoenaed by Twitter include Factorial Funds, Benefit Street, Bandera Partners, Founders Fund Growth II Management, Citadel CEO Ken Griffin, Tesla, and SpaceX. The subpoena requests that they turn over documents and communications that support or refute Musk’s accusations that Twitter underreports the number of fake or spam accounts on its platform.
Musk last month formally terminated his $44 billion deal to acquire the social media giant, claiming that “Twitter is in material breach of multiple provisions of that agreement.” The billionaire’s lawyer pointed to Twitter’s “substantially inaccurate representations,” particularly the company’s claim that less than 5% of its mDAUs are fake or spam accounts.
Twitter responded by suing Musk last month to force the Tesla boss to execute a takeover deal, claiming that “Mr. Musk is refusing to fulfill his obligations to Twitter and its shareholders because the deal he signed no longer serves his personal interests.” The case is scheduled to go to trial on October 17.
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