- Musk has made several claims against Twitter, including the reliability of its user metrics.
- He said Twitter was trying to “distract” from the many “misrepresentations”.
- Twitter pushed back, saying the billionaire’s story was “unbelievable and untrue.”
Elon Musk submitted confidentially According to a copy obtained by Insider, the 164-page countersuit against Twitter is filled with allegations about the validity of the social media company’s business claims.
The countersuit is another escalation in an ongoing legal battle over Musk’s attempt to back out of a $44 billion deal to buy Twitter. It is already planned that the billionaire and the platform will collide October court in a Delaware court as to whether it is legally able to to go from purchase transaction platform.
In his counterclaims, Musk has argued at length that he has the right to walk away from the deal entirely. He claims that Twitter publicly assured investors that its business based on user metrics was sound. He claims they are far from it. For months, Musk has argued publicly that Twitter more bots or spam accounts than acknowledged. After trying to get more and more information about the problem, he decided in early July terminate the transaction.
He now accuses the company of intentionally “miscounting” the number of spam accounts it has to exploit user metrics “as part of its scheme to mislead investors about the company’s prospects.” He also argues that Twitter’s reliance on the mDAU metric, or revenue from daily active Twitter users, as a basis for revenue is misleading. Meanwhile, according to Musk, Twitter has 65 million fewer daily users than it claims. And those who see ads and should be considered “monetizable” are only 16 million users.
Twitter’s lawsuit to enforce the merger agreement is “full of personal attacks on Musk and sleazy rhetoric aimed more at a media audience than this court” and “is nothing more than an attempt to distract from these misrepresentations,” Musk said in counterclaims .
“This has been Twitter’s strategy all along: to distract and obfuscate the truth about its disclosure, first from investors and then from Musk’s party when they began to see the truth,” the claims continued.
Twitter denied Musk’s allegations. Hours later, she filed a response in court that called the billionaire’s claims a “story” created “to avoid a merger deal that Musk no longer found attractive when the stock market, along with his vast personal wealth, declined.” value”.
“The claims are litigious history defied by evidence and common sense,” added Twitter.
Musk’s counterclaims were initially not available to the public because they allegedly contained private company information that needed to be redacted, according to arguments from Twitter’s lawyers. After days of arguments between attorneys for both sides, the judge overseeing the case in Delaware’s Chancery Court said the lawsuit needed to be announced by Friday.
Many experts say Musk is missing the fight in his efforts to withdraw from the iron deal deal he signed earlier this year. previously told Insider..
But its contraindication is trying to create a way out of the agreement. Although Twitter has repeatedly emphasized that Musk waived his right to information before signing the merger agreement, Musk says he took the traditional “trust but verify” route, meaning he trusted Twitter’s public disclosures and then took their approval and negotiated. the right to do so.
“Musk’s parties … fully expected that Twitter would not hide anything from its future owner, including fake or e-mails.” extent of the email account problem,” the complaint said. “Instead, the opposite happened. Twitter played a months-long game of hide-and-seek to bide time before Musk’s parties were able to uncover the truth about these representations, which they needed to shut down. simple queries, the more Musk parties suspected that Twitter had misled them.”
He claimed he did it on purpose. According to counterclaims, the platform’s user authentication process is weak. The company does not send e-mails. email, text or other direct messages to users to verify them, and its CEO, Parag Agrawal, was allegedly unable to explain to Musk how it chose which accounts should be managed by human moderators.
Twitter handed over massive amounts of account and user information to Musk. While Musk’s claims call it “limited,” his analysis so far allegedly showing “shocking results”. For example, a review conducted by Musk’s experts in early July found that “a third of visible accounts may have been fake or spam accounts.” To him, that means the “conservative floor” for spam accounts on the platform is 10%, not the 5% Twitter publicly claims.
That, along with the allegation that Twitter’s mDAU is much lower than it says it is, means Musk has every right to close the deal to buy the company, he said. Musk asked the court to rescind the merger agreement and pay undisclosed compensation.
Are you a Twitter employee or want to share insights? Contact Kali Hays at [email protected], via the secure messaging app Signal at 949-280-0267, or via DM on Twitter at @hayskali. Reach out using a dead device.