Elon Musk assures that Twitter has
fraud by voluntarily increasing the number of monetizable accounts, according to his arguments filed Thursday evening in court and consulted Friday by AFP.
The boss of Tesla had filed a complaint against Twitter at the end of July after being himself sued by the platform, which wants him to respect his commitment to purchase.
In this 165-page document, his lawyers accuse Twitter of having
masked the truth claiming 238 million monetizable daily users when there are actually 65 million less.
most advertisements would only be broadcastmillion users, a fraction”,”text”:”with less than 16million users, a fraction”}}”>with less than 16 million users, a fraction what Twitter claims.
The complaint, which qualifies
distorted representations of the social network of
Twitter frantically blocked information from circulating in a desperate attempt to prevent [Elon Musk] to uncover the fraud.
Elon Musk approached Twitter in April and then signed an agreement to buy the social network for $54.20 per share. He broke that pledge unilaterally in early July, arguing the company lied about the proportion of rogue accounts and spam on its platform.
A legal battle is now underway.
Indeed, in early July, Twitter sued Elon Musk before the Delaware Court of Chancery, a court specializing in business law, to compel him to honor his promise.
Two weeks later, Elon Musk counterattacked with a complaint
confidential filed in the same court. He asks the court to release him from the agreement and order Twitter to pay him damages.
A trial is due to open on October 17 and last five days.
Previously, the shareholders of Twitter will meet on September 13 to authorize or not this acquisition, which would represent a substantial added value for the shareholders.
Musk’s counterattack on Twitter has raised some interesting points, but Wall Street sees it more as a sign of weakness than strength for Musk, who is heading to the Delaware courtsjudged with AFP the analyst Dan Ives, of Wedbush Securities.
According to him, Twitter is in a good position to win this battle against the billionaire.
In court on Thursday, Twitter filed its response to Elon Musk’s complaint. According to this document, the boss of Tesla accuses the board of directors of having concealed the true proportion of inauthentic accounts, which Twitter claims to be less than 5%.
The platform replies that the businessman rushed the negotiations and that the agreement never mentioned the fake accounts.
The lawyers of the social network denounce a
attempt to evade a contract that Musk no longer finds attractive since the stock market fell.
Between the general decline in the stock market in recent months, declining social media advertising revenue related to economic conditions and public criticism from Elon Musk, Twitter’s stock had crashed to around $32 on July 11.
It was worth $42.52 on Friday at the close, up 3.56%. Tesla shares fell 6.63% to $864.51.
Elon Musk was questioned Thursday evening at Tesla’s general meeting of shareholders about the situation with Twitter.
Cautious at a time when he is in the midst of a legal tussle, the entrepreneur had contented himself with stating this:
I use Twitter a lot […] and since I understand this product very well, I have a good idea of how we should guide the engineering team at Twitter to make the product radically better.
I don’t need to have Twitter for thishe added.