Elon Musk Countersues Twitter Alleging Fraud by Social Media Company

7
Elon Musk Countersues Twitter Alleging Fraud by Social Media Company
Elon Musk Countersues Twitter Alleging Fraud by Social Media Company

Africa-Press – Cape verde. Elon Musk launched a countersuit against Twitter alleging the company committed fraud and breach of contract in the course of the now-jeopardized $44 billion acquisition deal by the billionaire entrepreneur, according to court filings released on Friday.

Twitter initially launched a lawsuit against Musk for attempting to pull out of the purchase agreement, claiming he was legally obligated to follow through with the deal. However, Musk continues to seek to cancel the acquisition after expressing concerns regarding the number of fake accounts on the social media platform.

“In its disclosures, Twitter claims to have nearly 238 million monetizable daily active users (mDAU) who participate on the platform, and tells its investors that this user base metric is a bellwether for its ability to generate revenue,” the court filings said. “After signing the Merger Agreement, however, the Musk Parties learned troubling facts that have called into serious doubt Twitter’s representations.”

The countersuit alleges that Twitter misrepresented the number of fake accounts included in the mDAU figures, which Musk’s team alleges to be at least twice the 5% level claimed by Twitter. The countersuit also alleges that Twitter’s mDAU figures are roughly 65 million users lower than reported.

The countersuit accuses Twitter of one count of fraud, one count of violating the Texas Securities Act and two counts of breach of contract. Musk also seeks a declaratory judgment that the merger agreement be terminated due to the alleged circumstances, according to the filing.

Musk initially agreed in April to purchase Twitter for approximately $44 billion before raising concerns about the company’s practices. The trial for Twitter’s lawsuit against Musk over the attempted cancellation of the deal is set to begin in October.

For More News And Analysis About Cape verde Follow Africa-Press

LEAVE A REPLY

Please enter your comment!
Please enter your name here