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Elon Musk Accuses Twitter of Fraud in Countersuit Over $44B Deal — Twitter Subpoenas Binance and Other Firms

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Tesla CEO Elon Musk accused Twitter of fraud in his counterclaim against the social network. Twitter has filed a lawsuit against the billionaire to force him through a $44 billion deal to buy the platform. “Musk’s parties are bringing their counterclaims for breach of contract and termination of contract based on Twitter fraud.”

Elon Musk’s legal battle with Twitter intensifies

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Tesla and Spacex CEO Elon Musk has filed an application counterclaim against Twitter after it was sued by the social media giant for terminating a $44 billion deal to buy the platform. Musk’s counterclaim, filed Thursday and released Friday, says:

This action comes as Twitter misrepresents to Musk’s parties regarding the state of the company and the “key metrics” that Twitter uses to estimate the number of users on its platform.

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“Twitter incorrectly counted the number of fake and spam accounts on its platform to mislead investors about the company’s prospects by focusing on supposed hundreds of millions of mDAUs,” Musk said. The social media company defines monetizable daily active users (mDAUs) as “users who have logged in and accessed Twitter on any given day through or Twitter apps that can serve ads.”

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The counterclaim states: “However, after the signing of the merger agreement, Musk’s parties learned disturbing facts that cast serious doubt on Twitter’s claims.”

“While Twitter asks the court to compel Musk’s parties to dismiss cases due to misrepresentation and contract violations by Twitter, Musk’s parties are seeking relief from the grave injustice of such an outcome,” Musk’s lawyers said, elaborating:

Accordingly, Musk’s parties are bringing their own counterclaims for breach of contract and termination of contract based on fraud by Twitter.

On Thursday, Twitter filed a series of rebuttals to Musk’s counterclaim, accusing the Tesla CEO of misrepresenting the numbers and misrepresenting how its online advertising system works.

Bret Taylor, Twitter board member, tweeted in response to Musk’s allegations:

Twitter filed a response to Mr Musk’s counterclaims. His statements are factually inaccurate, legally insufficient, and have no commercial value. We look forward to trial in the Delaware Court of Chancery.

Twitter has sued cryptocurrency exchange Binance and more than a dozen Musk advisers and potential creditors in a lawsuit against the Tesla CEO. Musk revealed in May that he had received funding from 18 companies to buy Twitter, including Binance.

Other companies and individuals subpoenaed by Twitter included Factorial Funds, Benefit Street, Bandera Partners, Founders Fund Growth II Management, Citadel CEO Ken Griffin, Tesla and Spacex. The subpoenas require them to hand over documents and messages that either support or refute Musk’s accusation that Twitter is downplaying the number of fake or spam accounts on its platform.

Last month, Musk officially canceled a $44 billion purchase of the social media giant, saying “Twitter is in material breach of numerous provisions of that agreement.” The billionaire’s lawyer noted that Twitter made “materially inaccurate statements,” particularly regarding the company’s claim that less than 5% of its mDAUs are fake or spam accounts.

In response, Twitter sued Musk last month to force the Tesla boss to go through a buyout deal, saying “Musk is refusing to honor his obligations to Twitter and its shareholders because the deal he signed no longer serves his self-interest.” “. The case is due to go to court on October 17.

Do you think Twitter or Elon Musk will win this case? Let us know in the comments below.

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