Elon Musk claimed in a court document filed in Delaware that he was duped into signing the agreement to purchase the social media business, but on Thursday—Twitter Inc (TWTR.N) rejected this assertion, calling it unrealistic and untrue.
The allegations were made by Musk in a countersuit that was filed last Friday and was publicly disclosed on Thursday.
As per Musk’s claim, Twitter tricked him into finalizing a $44 billion partnership deal despite the fact that he is a multi-billionaire founder of several companies who receives advice from Wall Street financiers and attorneys. That claim is as unbelievable and untrue as it appears, according to the document Twitter revealed on Thursday.
The next shot in what is shaping up to be a bitter court battle between the world’s wealthiest man and the social networking behemoth is Twitter’s filing.
On October 17, the two sides will go on trial after Musk attempted to renegotiate his agreement to buy Twitter due to what he claims is a distortion of false accounts on the platform.
The San Francisco-based business is attempting to pressure Musk into carrying out the agreement and accuses him of destroying it since it no longer benefited him.
An inquiry for comment was not immediately answered by a Musk official.
Musk charges Twitter with increasing efforts to hide the actual figure of its users as the market fell, in the counterclaims that were made public on Thursday.
The counterclaims contend that Twitter was aware that disclosing the material sought by the Musk Parties would show that Twitter had been paddling nude as a protracted bull market was ending and the tide was turning.
Thus, according to Twitter, Musk has not “made a plea for a single piece of evidence” in support of these “fact-free” claims.
Musk further asserts that Twitter’s fabrications go much further than merely giving inaccurate information regarding its spam or fake accounts.
While Twitter claims to have 238 million “monetizable day-to-day average users,” Musk contends that the number of users who actually view advertisements is about 65 million lower.
Twitter argued that the information it provided to the SEC concerning its monetizable everyday average users was accurate.
In April, Tesla Inc. CEO Elon Musk (TSLA.O) made an offer to purchase Twitter for $54.20 each share because he saw the social media platform’s value as a global forum for free speech.
But as Twitter’s stock price fell short of his acquisition bid, he lost interest in the company and started to doubt the claim that fake and spam accounts accounted for less than 5% of all users.
On July 8, Musk attempted to leave Twitter without paying the full $1 billion termination fee, claiming that Twitter had withheld information about clone and spam accounts. He was sued by Twitter four days later.
Twitter served dozens of subpoenas earlier this week on banks, investors, and law firms that supported Musk’s acquisition bid, and Musk served subpoenas for work to Twitter consultants at Goldman Sachs & JP Morgan.
Legal experts vouch that Twitter’s demands indicated that the firm wanted to understand why Musk switched against it or whether he breached his duty to get adequate finance.
Meanwhile, on the bank side of things we see that on Wednesday, JPMorgan Chase (JPM.N), a major Wall Street player, made an anchor investment in L’ATTITUDE Ventures’ first institutional fund, which raised over $100 million. Additionally, the Trujillo Group & Bank of America (BAC.N) made their first investments.
Barclays (BARC.L), the Royal Bank of Canada (RY.TO), Cisco, and others have invested in the fund, which aims to invest in early-stage American businesses that were either started by or are managed by Latino entrepreneurs.
According to Jamie Dimon, CEO of JPMorgan, Latino-led enterprises are vital to the U.S. market but frequently lack access to funding and resources for expansion.