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Elon Musk accuses Twitter of ‘fraud’ in takeover lawsuit

Elon Musk claims that Twitter fraud by voluntarily increasing the number of monetized accounts, according to his arguments filed Thursday night in court and seen by AFP on Friday.

Tesla’s boss filed a complaint against Twitter in late July after the platform sued him, demanding he honor his purchase obligations.

In this 165-page document, his lawyers accuse Twitter of disguised the truth claiming 238 million monetizable daily users, when the reality is 65 million fewer.

Otherwise, most advertisements will only be broadcastwith less than 16 million users, part what twitter says.

Complaint that qualifies misrepresentations social network of sinsI confirm that Twitter feverishly blocked the spread of information in a desperate attempt to prevent [Elon Musk] to uncover fraud.

Elon Musk turned to Twitter in April and then signed an agreement to buy the social network for $54.20 a share. He broke that promise unilaterally in early July, alleging that the company had lied about the proportion of fraudulent accounts and spam on its platform.

Now there is a lawsuit.

Indeed, in early July, Twitter sued Elon Musk even before Delaware Court of Chancery, a court specializing in commercial law to force him to keep his promise.

Two weeks later, Elon Musk responded 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.

The trial is due to begin on October 17 and will last five days.

Twitter recently sued Elon Musk to force him to honor his $44 billion acquisition obligation.

Photo: Associated Press/Richard Drew

Previously, Twitter shareholders will meet on September 13 to decide whether or not to allow this acquisition, which will represent a significant added value for shareholders.

Musk’s Twitter counterattack raised some interesting questions, but Wall Street sees it as more of a sign of weakness than strength for Musk, who is heading to the Delaware court.judged with AFP analyst Dan Ives, of Wedbush Securities.

According to him, Twitter has every chance to win this battle with the billionaire.

On Thursday, Twitter filed its own response to Elon Musk’s complaint. According to the document, the Tesla boss accuses the board of directors of hiding the true proportion of bad accounts, which Twitter claims is less than 5%.

The platform replies that the businessman was in a hurry to negotiate and that the agreement did not mention fake accounts.

Social media lawyers condemn trying to evade a contract that Musk no longer sees as attractive after the stock market crash.

Due to a general downturn in the stock market in recent months, declining social media ad revenues linked to economic conditions, and public criticism from Elon Musk, Twitter shares fell to around $32 on July 11.

It was worth $42.52 on Friday, up 3.56%. Tesla shares fell 6.63% to $864.51.

Elon Musk was questioned on Thursday evening at a general meeting of shareholders of Tesla about the situation with Twitter.

Cautious at a time when he is in the midst of a legal battle, the entrepreneur was satisfied with the following statement: I often use twitter […] and since I am very knowledgeable about this product, I have a good idea of ​​how we should send the engineering team to Twitter to radically improve the product.

I don’t need twitter for thishe added.

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