Elon Musk Files Countersuit Against Twitter Over $44 Billion Settlement | social media news

Tesla boss says purchase deal is void because Twitter misled him about its count of fake and spam accounts.

Elon Musk has filed claims against Twitter as he fights the tech company’s lawsuit demanding his $44 billion buyout deal be demanded from him.

Musk has mounted a legal defense against Twitter’s claim that he is contractually obligated to complete the deal he signed in April, the Chancery Court in the state of Delaware said in a notice on Friday.

The Tesla boss courted Twitter’s board with an offer of $54.20 per share. But on July 8, he announced that he was “terminating” his agreement over allegations that the company misled him regarding its count of fake and spam accounts.

Twitter sued days later, calling the false account’s claims a distraction and saying Musk was bound by the merger contract to close the deal at $54.20 per share.

Musk’s 164-page countersuit was filed as “confidential,” but court rules require him to file a public version of the filing with confidential information redacted.

Chief Justice of the Court of Chancery, Kathaleen St J McCormick, has ordered the five-day trial to begin on October 17, rather than two weeks in February next year, as the billionaire has requested.

Twitter, whose share price closed at $41.61 on Friday, stood by its estimates regarding accounts run by software “bots” rather than people, arguing that Musk is making excuses to terminate the contract.

The social media giant accused the billionaire of seeking vast amounts of data that is irrelevant to the main issue of the case: whether he had breached the settlement contract.

McCormick on Friday seemed to anticipate the controversy. “This order does not resolve any specific discovery disputes, including ownership of any large data set requests,” the judge said.

The social media platform has urged shareholders to back the deal, setting a vote on the merger for September 13.

“We are committed to closing the merger at the price and terms agreed to with Mr. Musk,” Twitter CEO Parag Agrawal and Chairman of the Board Bret Taylor said in a copy of a letter to investors.

Musk was also sued on Friday by Luigi Crispo, who owns 5,500 shares of Twitter. Crispo asked the court to order the billionaire to close the deal, arguing that he had breached his fiduciary duty to Twitter shareholders and awarded damages for the losses he caused.

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