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Musk accuses Twitter of fraud as $44 billion buyout war escalates

The richest man in the world is asking a court to release him from his contract and force Twitter to pay damages to be determined by the court.

Twitter denied the capricious billionaire’s claims, calling them “incredible and untrue.” (Reuters)

Elon Musk has accused Twitter of fraud, alleging the social media platform misled him about key aspects of the business before agreeing to a $44 billion acquisition amid a heated legal battle. .

Tesla’s boss filed the allegations late Thursday.

In documents filed with the Delaware court, Musk claimed that the number of users who actually saw ads on the platform was about 65 million less than the company’s figure of 238 million. .

“Twitter’s disclosures are slowly unraveling, and Twitter is desperately closing its information gates to prevent the Musk faction from revealing its fraud,” the allegation claimed.

Last week, Musk filed a counterclaim, which was finally made public on Thursday, and along with legal defenses to Twitter’s allegations, Musk is contractually obligated to complete the acquisition transaction.

The entrepreneur has accused Twitter not only of deceiving him, but of lying to US market regulators. He is asking the court to release him from his contract and force his Twitter to pay damages to be determined at a trial that begins Oct. 17.

Billions of dollars are at stake, but so is the future of Twitter, which Mr. Musk said should allow all legal speech. This absolutist position raises concerns that the network could be used to incite violence.

read more: Elon Musk files counterclaim as legal battle over Twitter deal heats up

“Twitter complies in all respects”

In its own filing, Twitter rejected the capricious billionaire’s claims as “incredible and untrue.”

The legal battle began when Musk pleaded with Twitter’s board of directors for an offer of $54.20 a share in April, but then in July the company misled him over a tally of fake and spam accounts. He announced that he was ending his contract.

Twitter, whose shares rose about 3.5% to $42.51 on Friday, sticks to estimates that less than 5% of activity on its platform is due to software “bots” rather than humans.

The social media platform said in court that Musk’s claim that the number of fake accounts exceeded 10% was “unsupportable.”

Twitter also disputed Musk’s claim that he has the right to walk away if the bot count turns out to be incorrect, as it didn’t ask for information on the topic when it made the acquisition offer. .

“Twitter has complied with the merger agreement in every way,” the company said in a Chancery Court filing, accusing Musk of fabricating a story to escape the no longer attractive merger agreement. .

“Mr. Musk’s counter-argument is based on distortion, misrepresentation and outright deception, so nothing will change,” Twitter added. Social media platforms set up votes on the merger on Sept. 13, urging shareholders to back the deal.

read more: Twitter Stalls on Dossier — Musk’s Lawyer

Source: AFP

https://www.trtworld.com/business/musk-accuses-twitter-of-fraud-as-44b-buyout-battle-escalates-59498?utm_source=other&utm_medium=rss Musk accuses Twitter of fraud as $44 billion buyout war escalates

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