Elon Musk accused Twitter of fraud.
Elon Musk claims in a lawsuit that Twitter lied about its user base and misrepresented the real value of the social network.
Elon Musk’s 164-page summary of the lawsuit was released in a Delaware court on Aug. 4. According to him, the Twitter team bought time in a month-long game of hide-and-seek to gather more information to complete the $44 billion deal.
In profile Bloomberg Musk’s team believes Twitter is misleading investors and the US Securities and Exchange Commission (SEC) and “recklessly withholding information to prevent Musk’s site from detecting fraudulent behavior.”
“Towards the end of the development cycle, Twitter knew that Musk would release the exact numbers they requested. As a result, they tried to hide her,” the lawsuit says.
Musk also reiterated that Twitter hadn’t reported the true volume of spam accounts, saying, “Misinformation on Twitter far outweighs advertising, which is why the decision to buy the social network was confusing.” Specifically, Twitter said that the Platform now has more than 238 million users who can earn ad revenue every day. But only “about 65 million people” actually see the ad.
Meanwhile, Twitter called Musk’s argument “absurd and contradictory.” The social network also confirmed that the information it provided to courts and the US Securities and Exchange Commission (SEC) about spam accounts and everyday users was correct. Musk’s claims “contain no evidence and are not factual.”
On April 25, Elon Musk announced the purchase of Twitter for $44 billion, which translates to $54.20 per share. After the deal, however, the social network’s business gradually declined, and the American billionaire announced in early July that he was exiting the deal.
As a reason for the “deletion,” he accused Twitter of lying about the number of spam accounts on the platform and not giving it full rights to control such a large amount of data. Twitter then sued Mook, accusing him of “daily dishonesty” during negotiations and causing them significant damage.
The social network initially called for the case to be heard in September, but Mook wants to postpone it until February next year. However, Delaware District Court Judge Kathleen McCormick ruled that the date would be October 17. And it lasts five days.
Bao Lam (Consequences Reuters)