Twitter filed its response to Elon Musk’s complaint in court on Thursday, giving a more precise idea of the arguments of the multi-billionaire who is seeking to get out of the social network’s takeover agreement and accuses him of having “threw dust in the eyes“. The claims of the boss of Tesla and SpaceX “are factually inaccurate, legally insufficient and commercially irrelevant. We can’t wait for the trial to take place“, tweeted Thursday Bret Taylor, the chairman of the board of directors of the platform.
In mid-July, Twitter sued Elon Musk in the Delaware Court of Chancery, a court specializing in business law, to force him to honor his acquisition commitment for $ 44 billion. The trial is due to start on October 17. But on Friday, the richest man in the world counterattacked with a complaint “confidential“. “According to Musk – the billionaire who has founded several companies and is advised by Wall Street bankers and lawyers – Twitter threw window dressing at him to get him to sign the takeover deal“, Indicates the social network. “It’s an attempt to escape a contract that Musk hasn’t found attractive since the stock market went down.“, Assert his lawyers.
Elon Musk approached Twitter in April, then signed a deal for $54.20 a share. He unilaterally ended it in early July, on the grounds that the San Francisco-based company allegedly lied about the proportion of automated and spam accounts on its platform. According to the document filed by Twitter on Thursday, the Tesla boss accuses the board of directors of having concealed the true proportion of inauthentic accounts, which he says is around 10% of daily active users and exposed to advertising. Twitter estimates it to be less than 5%.
The official documents filed by the platform with the American stock market policeman “contain numerous material misrepresentations and omissions that distort Twitter’s value and resulted in Elon Musk agreeing to buy the company at an inflated price“, assure the lawyers of the businessman. Twitter’s strategy, they continue, has been to “to play hide and seek” to prevent the buyer from “discern the truth“. Twitter responds that the businessman rushed the negotiations and that the deal never mentioned the fake accounts.
Between the general decline in the stock market in recent months, falling social media ad revenue (due to economic conditions) and public criticism from Elon Musk, Twitter’s stock had crashed to around $32 on July 11. . It was worth around $41 on Thursday.