According to media sources, Elon Musk accused Twitter of fraud in a countersuit over his cancelled $44 billion offer for the social media business, alleging that the company withheld essential information and misled his team about its genuine user base.
The countersuit brought by the billionaire CEO of Tesla on Thursday, according to The Washington Post, claims that Twitter violated the Texas Securities Act, breached a contract, and committed fraud.
According to the Wall Street Journal, Musk’s counterclaims were submitted confidentially last week and made public in a filing late on Thursday at the Delaware Chancery Court.
Musk made a purchase bid for the business earlier this year, but later sought to back out of the agreement by asserting that the social media network was riddled with far more “spam bots” and bogus accounts than Twitter had acknowledged.
To make him finish the transaction, Twitter filed a lawsuit. Musk’s countersuit was filed in response.
According to The Post and The Journal, Musk’s attorneys claimed that Twitter actually has 65 million less “monetizable daily active users” than it claims it does (238 million), based on its own disclosures.
According to the filing, most of Twitter’s adverts are only exposed to a small percentage of the company’s user base.
Unexpectedly, Twitter responded to Musk’s accusations before Musk’s own counterclaims were made public.
A merger arrangement that Musk no longer felt appealing caused Twitter to label Musk’s justification as “a story, constructed in an effort to flee.”
Trial on the matter is set for October 17.