Elon Musk countersuit accuses Twitter of fraud

yeah it's created *** whole lot of uncertainty for the company and you see them arguing that in the lawsuit where where um Elon musk's tweets, it says I've been disparaging the company. All of the uncertainty about the deal um has made it hard to, to make big decisions about who to hire and whether to hire they off people um and sort of the future business direction of the company. There's *** lot of legal experts to they think that the Delaware court is sensitive to the question of of of somebody just wanting to get out of *** deal for because of buyer's remorse. Like there has to be *** really good reason why they would back out of an agreement they made with the company they're trying to buy. Um And so if twitter can really focus on that argument, it seems like it has *** pretty good case. On the other hand, Elon musk seems to think he has *** pretty good case showing why the problem with bots is not something that twitter has been transparent enough about. Twitter wanted this to get done in september uh Elon musk's team said maybe february would be better. Uh and the judge pretty much sided with Twitter and said this really needed to be expedited but she set *** trial date for October so one possible outcome is Elon Musk could have to pay *** billion dollars to make this go away which is *** lot less than $44 billion dollars which is what he agreed to pay to buy the company. Um The other extreme is um the judge could potentially force um Elon Musk to go through with the entire $44 billion but there's *** lot of possibilities in between that they could Twitter could make an argument that there have been some damages because of what's happened and and they might seek *** higher amount that's higher than just the $1 billion dollar breakup fee. Um Or they could end up settling um If, if it seems like that's going to happen and maybe they decide they don't want to go through with the with the whole trial.

Elon Musk accused Twitter of fraud in a countersuit over his aborted $44 billion deal for the social media company, which he said held back necessary information and misled his team about its true user base.The countersuit by the billionaire and Tesla CEO alleges that Twitter committed fraud, breach of contract and violation of the Texas Securities Act.Musk's counterclaims were filed confidentially last week and unsealed in a filing late Thursday at the Delaware Chancery Court.Musk had offered to buy Twitter earlier this year, then tried to back out of the deal by claiming the social platform was infested with a larger numbers of “spam bots” and fake accounts than Twitter had disclosed.Twitter sued to force him to complete the acquisition. Musk responded by filing his countersuit.Musk's attorneys argued that Twitter “misrepresentations or omissions” distorted Twitter’s value and caused Musk to agree to buy it at an inflated price. They said Twitter’s own disclosures revealed that it has 65 million fewer “monetizable daily active users,” who can be shown digital ads, than the 238 million that Twitter claims.The filing also said most of Twitter's ads are shown only to a sliver of the company's user base.In an unexpected twist, Twitter filed its response denying Musk's accusations before Musk’s own counterclaims surfaced.Twitter called Musk’s reasoning “a story, imagined in an effort to escape a merger agreement that Musk no longer found attractive.”The case is scheduled to go to trial on October 17.

The countersuit by the billionaire and Tesla CEO alleges that Twitter committed fraud, breach of contract and violation of the Texas Securities Act.

Musk's counterclaims were filed confidentially last week and unsealed in a filing late Thursday at the Delaware Chancery Court.

Musk had offered to buy Twitter earlier this year, then tried to back out of the deal by claiming the social platform was infested with a larger numbers of “spam bots” and fake accounts than Twitter had disclosed.

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

Musk's attorneys argued that Twitter “misrepresentations or omissions” distorted Twitter’s value and caused Musk to agree to buy it at an inflated price. They said Twitter’s own disclosures revealed that it has 65 million fewer “monetizable daily active users,” who can be shown digital ads, than the 238 million that Twitter claims.

The filing also said most of Twitter's ads are shown only to a sliver of the company's user base.

In an unexpected twist, Twitter filed its response denying Musk's accusations before Musk’s own counterclaims surfaced.

Twitter called Musk’s reasoning “a story, imagined in an effort to escape a merger agreement that Musk no longer found attractive.”

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

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