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Elon Musk countersues Twitter alleging fraud

Elon Musk has accused Twitter of fraud in a countersuit as he aborted a $44 billion deal with the social media company, which he says withheld necessary information and misled his team about information about its real user base.

A countersuit filed Thursday by the billionaire and Tesla CEO alleges Twitter committed fraud, breach of contract and violations of Texas securities laws, The Washington Post reported.

Musk’s counterclaim was filed confidentially last week and made public in a Delaware Chancery Court filing late Thursday, The Wall Street Journal reported.

Musk had offered to buy the company earlier this year before trying to back out of the deal, claiming the social platform had far more “spam bots” and fake accounts than Twitter had disclosed.

Twitter sued to force him to complete the acquisition. Musk responded by filing a countersuit.

According to The Washington Post and The Wall Street Journal, Musk’s lawyers have argued that Twitter’s own disclosures show “monetizable daily active users” to whom Twitter could show digital ads, compared to the 238 million Twitter claims. “65 million less.

The filing also said that most of Twitter’s ads were shown to only a small percentage of the company’s users.

Surprisingly, Twitter responded by denying Musk’s allegations before Musk’s own counterclaim surfaced.

Twitter called Musk’s reasoning “a story to escape a merger deal that Musk thought was no longer attractive.”

The case is scheduled to go to trial on October 17.

Copyright © 2022 The Washington Times, LLC.



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