Tuesday, August 9, 2022
HomeNewsElon Musk files a counterclaim in response to Twitter's takeover lawsuit

Elon Musk files a counterclaim in response to Twitter’s takeover lawsuit

Court papers show that Tesla CEO Elon Musk has filed a lawsuit against the case brought by Twitter to compel him to complete the $44 billion acquisition of the company.

A judge in the US state of Delaware said earlier on Friday that a five-day trial will begin on October 17 to consider the lawsuit brought by the social media platform against the world’s richest person.

A memo to the Delaware Court of Business Law in charge of this file stated that the complaint, filed “secretly”, came in a 164-page document that the public can not see yet.

But they will be published quickly, as court rules oblige Musk to make a public version that deletes industrial secrets and other sensitive information they may contain.

One of the shortcomings in Musk’s complaint may be that Twitter may have lied about the number of its users after it accepted his purchase offer, according to what the Wall Street Journal reported.

Musk had announced in April his intention to buy the social network at a price of $ 44 billion, but he confirmed in early July that he had ended the agreement, arguing that the San Francisco-based company had lied about the percentage of automated accounts and spam messages on the platform.

Twitter filed the complaint on July 12 in a court in Delaware, in the southeastern United States, to force the world’s richest people to commit to the purchase.

The social network is seeking to pay Musk to honor the purchase agreement or obtain compensation for its termination, estimated at one billion dollars.

Musk had pledged to buy Twitter’s stock at $54.20.

However, the general decline in the financial markets in recent months, the collapse of advertising revenues in this social network, and the public criticism of Musk led to a significant decline in the share price, reaching the limits of $ 32 on July 11, on the eve of filing a complaint against Musk. Twitter shares were trading Friday at $41.61.

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