Twitter rejects Elon Musk’s claims he was cheated

Twitter on Thursday rejected claims by Elon Musk in a Delaware court filing that he was deceived into signing the agreement to buy the social media company, saying it was “implausible and contrary to facts”.

Musk made those claims in a countersuit he filed under seal last Friday, which was made public Thursday.

“According to Musk, he – the billionaire founder of several companies, advised by bankers and Wall Street lawyers – was tricked by Twitter into signing a $44 billion merger deal. This story is as implausible and contrary to the facts as it sounds,” said the filing posted by Twitter on Thursday.

The Twitter filing is the latest salvo in what is shaping up to be a major legal showdown between the world’s richest person and the social media giant.

The San Francisco-based company is struggling to resolve months of uncertainty over its fate as Musk tries to pull out of the deal over what he says is Twitter’s misrepresentation about fake accounts.

The Twitter filing is the latest salvo in what is shaping up to be a major legal showdown.
AFP via Getty Images

Musk, the chief executive of electric car company Tesla, offered to buy Twitter for $54.20 a share in April, saying he believed in its potential as a global platform for free speech. .

But he soured on Twitter as its share price lagged its takeover bid and began expressing skepticism that bot and spam accounts accounted for less than 5% of users.

Musk sought to withdraw on July 8 without paying a $1 billion break fee, citing Twitter’s failure to provide details of bot and spam accounts. Twitter sued him four days later.

The company accused Musk of sabotaging the deal because it no longer served its interests and of throwing a veil that disrupted its work and hurt shareholders.

A trial on October 17 is scheduled.

Earlier this week, Twitter issued dozens of subpoenas to banks, investors and law firms that backed Musk’s takeover bid, while Musk issued subpoenas to advisers from Twitter at Goldman Sachs and JP Morgan for their work.

Legal experts said Twitter’s demands suggested the company wanted to know why Musk had taken action against it, or whether he had reneged on his obligation to secure sufficient funding.

A representative for Musk did not immediately respond to a request for comment.

New York Post

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