Elon Musk's countersuit against Twitter: Company Operating As A "Scheme" To Deceive Investors

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05 Aug 2022
6 min read

News Synopsis

Elon Musk's confidentially filed document of 164 pages against Twitter that includes allegations about the credibility of the firm's business claims, according to sources.

The lawsuit is the latest escalation in the legal battle raging regarding Musk's attempts to back from the $44 billion deal to purchase Twitter. The billionaire and the company are set to square off in the fall court trial in Delaware court to determine if Musk is legally allowed to leave of the agreement to purchase the company.

In his counterclaims, Musk insists that he has the right to renounce the deal completely. He says he was influenced to believe Twitter's statements to investors that the company's business model, based on user metrics and user metrics, was safe. The reality is far from that Musk claims. For the past several months, Musk has argued publicly that Twitter has many more "bots" or spam accounts than it acknowledged. After requesting more and more details about the issue, the Chief Operating Officer (CEO) at the beginning of July made the decision to cancel the deal.

Now, he's accusing Twitter of deliberately "miscounting" the amount of accounts with spam in order to increase its metrics for user engagement "as part of its plan to deceive investors about the future prospects of the company." The company's dependence on the measurement mDAU which is the monetizable per day active Twitter users as the basis for revenue is a lie in itself. However, Twitter actually has 65 million fewer users per day than the figures it has claimed, in the words of Musk. Also, those who view ads and should be classified as " monetizeable".

Elon Musk's confidentially filed document of 164 pages against Twitter that includes allegations about the credibility of the firm's business claims, according to sources.

The lawsuit is the latest escalation in the legal battle raging regarding Musk's attempts to back from the $44 billion deal to purchase Twitter. The billionaire and the company are set to square off in the fall court trial in Delaware court to determine if Musk is legally allowed to leave of the agreement to purchase the company.

" could be as low as 16 million.

Twitter's suit to ensure compliance with the merger agreement is "filled by personal attacks at Musk and extravagant rhetoric directed at a mass media audience than the tribunal" and "is just an attempt to deflect attention from the false representations," Musk's counterclaims said.

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