Twitter has hit again at Elon Musk, after he filed a counter lawsuit towards the microblogging platform final week.
Musk had responded along with his personal authorized motion, as Twitter is currently suing him over his attempt to terminate his agreed $44 billion deal to acquire the social media platform.
Musk’s counter lawsuit was filed ‘below seal’ final Friday and his allegations towards Twitter weren’t identified till this Thursday, when it was made public.
Musk’s counter claims
In his counter lawsuit submitting, Elon Musk alleged he was “hoodwinked” into signing the deal to purchase the social media firm.
Musk accused Twitter of stepping up efforts to hide the true variety of its customers, because the market plummeted.
“As an extended bull market was coming to an in depth, and the tide was going out, Twitter knew that offering the Musk Events the data they have been requesting would reveal that Twitter had been swimming bare,” the counterclaims allege.
Musk additionally claimed that “Twitter’s misrepresentations run far deeper than merely offering incorrect numbers” about its spam or false accounts.
Whereas “Twitter touts having 238 million ‘monetizable every day energetic customers,’ these customers who really see adverts” is roughly 65 million decrease, Musk stated within the counterclaims.
Twitter response
However Twitter’s chairman Bret Taylor hit again at Elon Musk, labelling his counterclaims as “factually inaccurate, legally inadequate, and commercially irrelevant.”
Twitter filed a response to Mr. Musk’s counterclaims. His claims are factually inaccurate, legally inadequate, and commercially irrelevant. We stay up for the trial within the Delaware Court docket of Chancery. See the submitting right here: https://t.co/beAyGqRxFL
— Bret Taylor (@btaylor) August 4, 2022
And Twitter printed its detailed response to Elon Musk’s claims with its own filing, and it insisted that its SEC disclosures about monetisable every day energetic customers have been correct.
“That story is as implausible and opposite to reality because it sounds,” Twitter responded. “And it’s simply that – a narrative, imagined in an effort to flee a merger settlement that Musk not discovered engaging as soon as the inventory market – and together with it, his huge private wealth – declined in worth.”
“After spending months searching for an excuse to get out of the contract, Musk claimed to terminate it, explaining his supposed causes for doing so in a July eight letter to Twitter,” the agency added.
“When Twitter sued to enforce its rights and exposed the weakness of these causes, Musk spent weeks arising with extra supposed causes – the Counterclaims – which provide up a wholly new set of excuses for his breach.”
Twitter goes after Elon Musk exhausting, and earlier this week the platform sent dozens of civil subpoenas to global banks and different co-investors in Elon Musk deal and Musk advisers.
Twitter is searching for details about what lenders, traders and advisers have been saying to one another about Musk’s behaviour after he signed the deal in late April.
Musk responded and issued subpoenas to Twitter’s advisers at Goldman Sachs and JP Morgan over their work.
“The (Musk) Counterclaims are a made-for-litigation story that’s contradicted by the proof and customary sense,” added Twitter in its submitting. “Musk invents representations Twitter by no means made after which tries to wield, selectively, the intensive confidential information Twitter offered him to conjure a breach of these purported representations.”
“But Musk concurrently and incoherently asserts that Twitter breached the merger settlement by stonewalling his info requests,” Twitter said. “As defined beneath and can be demonstrated at trial, the Counterclaims are factually inaccurate, legally inadequate, and commercially irrelevant.”
Courtroom showdown
Twitter’s response submitting is the newest salvo in what’s proving to be an more and more acrimonious authorized showdown between the 2 events.
The 2 sides are headed to a Delaware Court docket of Chancery on 17 October, after a win for Twitter, which had sought a trial as early as September over considerations that the uncertainty over the deal was harming its backside line.
Musk’s authorized group had initially requested a date in February 2023, earlier than suggesting the 17 October date.
The social media agency agreed given that the trial might be concluded in 5 days.
Within the settlement he signed with Twitter, Musk can solely again out if one thing main occurs to Twitter’s enterprise, and there may be doubt that Twitter’s bot situation could also be sufficient of a justification.
Twitter can demand the $1 billion (£836m) contractual breakup charge from Musk, if he reneges on the settlement.
However Musk can’t be ordered to shut the deal if his financing fails – offered he was not the reason for the failed funding.
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