Musk countersuit accuses Twitter of fraud over 'bot' count - Albuquerque Journal

Musk countersuit accuses Twitter of fraud over ‘bot’ count

Elon Musk accused Twitter of fraud in a countersuit over his aborted $44 billion deal for the social media company, which he claimed held back necessary information and misled his team about the true size of its user base.

The countersuit by the billionaire and Tesla CEO alleges that Twitter committed fraud, breach of contract and violation of a securities law in Texas, where Musk lives.

Musk’s counterclaims were filed confidentially last week and unsealed in a filing late Thursday at the Delaware Chancery Court.

Musk offered to buy Twitter earlier this year, then tried to back out of the deal by claiming the social platform was infested with a larger numbers of “spam bots” and fake accounts than Twitter had disclosed.

Twitter sued to force him to complete the acquisition. Musk responded by filing his countersuit.

Musk’s attorneys argue in the countersuit that Twitter “misrepresentations or omissions” distorted the company’s value and caused Musk to agree in April to buy it at an inflated price. They said Twitter’s own disclosures revealed that it has 65 million fewer “monetizable daily active users,” who can be shown digital ads, than the 238 million that Twitter claims.

The filing also said most of Twitter’s ads are shown only to a sliver of the company’s user base.

Musk’s team also accused Twitter of making too many major changes in recent months without consulting Musk, including personnel decisions and allegedly disobeying social media restrictions imposed by the government of India, which is Twitter’s third largest market. Musk had pledged to make Twitter a haven for free speech but has also said it must comply with the local laws where it operates.

In an unexpected twist, Twitter filed its response denying Musk’s accusations before Musk’s own counterclaims surfaced.

Twitter called Musk’s reasoning “a story, imagined in an effort to escape a merger agreement that Musk no longer found attractive.” The company, in particular, took issue with Musk’s estimate of fake accounts, saying the analysis relied on a “generic web tool” that designated Musk’s own Twitter account as a likely bot.

“The result is a distortion that Musk is hoping will nonetheless make waves,” Twitter’s response said.

The case is scheduled to go to trial on October 17. The Delaware court handles many high-profile disputes between businesses, such as Twitter, that are incorporated there.

Home » Business » Most Recent Biz News » Musk countersuit accuses Twitter of fraud over ‘bot’ count


Albuquerque Journal and its reporters are committed to telling the stories of our community.

• Do you have a question you want someone to try to answer for you? Do you have a bright spot you want to share?
   We want to hear from you. Please email yourstory@abqjournal.com

taboola desktop

1
J&J to end sales of baby powder with talc ...
Health & Safety
Johnson & Johnson is pulling baby ... Johnson & Johnson is pulling baby powder containing talc worldwide next year after it did the same in the U.S. and Canada amid thousands ...
2
Blake’s caters to ‘heat-loving customers’ with new buffalo-flavored offering
ABQnews Seeker
‘Buffalo chicken boat’ will be available ... ‘Buffalo chicken boat’ will be available Monday
3
EXPLAINER: How is inflation affecting commuting costs?
Most Recent Biz News
Gas prices have fallen from the ... Gas prices have fallen from the record highs they reached earlier this summer, but they're still much higher than a year ago. And with ...
4
Asian shares track Wall Street gains on cooling inflation
Most Recent Biz News
Shares advanced Thursday in Asia after ... Shares advanced Thursday in Asia after benchmarks closed at three-month highs on Wall Street as investors cheered a report showing inflation cooled more than ...
5
Elon Musk sells $7B in Tesla shares ahead of ...
Most Recent Biz News
Elon Musk has sold nearly $7 ... Elon Musk has sold nearly $7 billion worth of shares in Tesla as the billionaire gets his finances in order ahead of his court ...
6
Rio Rancho, Los Lunas housing projects underway
ABQnews Seeker
One of New Mexico's largest homebuilders ... One of New Mexico's largest homebuilders is looking to help meet housing demand in the Albuque ...
7
Asian stocks fall ahead of US inflation
Most Recent Biz News
Asian stocks followed Wall Street lower ... Asian stocks followed Wall Street lower Wednesday ahead of U.S. inflation data that traders worry will show upward pressure on prices still is too ...
8
State offers wildfire assistance grants
ABQnews Seeker
Small businesses and self-employed New Mexicans ... Small businesses and self-employed New Mexicans who suffered financial losses due to wildfires and floods this year are eligible for grants through a new ...
9
When the job interview is more than just an ...
Business
Dear J.T. & Dale: I'm interviewing ... Dear J.T. & Dale: I'm interviewing for a job, and the recruiter shared what to expect in the interview process. They sent me the ...