Elon Musk applauds Twitter lawsuit over $44 billion deal

Elon Musk accused Twitter on Friday of deceiving him about his services, obfuscating the facts and not notifying him of executive changes, in his first official response to company lawsuit to force him to complete the $44 billion acquisition of the social media service.

Attorneys for Mr. Musk, who made a blockbuster deal to buy Twitter in April but has since tried to end the purchase has argued in a legal action against the company’s claim for a four-day trial in September in the case.

Twitter was rushing to court after “a two-month treasure hunt of delays, technical bottlenecks, evasive responses and ultimately rejections.” This is stated in the statement of Musk’s lawyers. They added that Twitter was trying to “hide the truth”. fake accounts on the serviceis a question that Mr. Musk has made central to his desire to get out of the deal.

Twitter requested a September trial because Mr Musk had to complete the deal to buy the company by October. 24. d. Instead, Musk’s lawyers suggested a February trial date, noting that the deal is automatically extended in the event of litigation. The banks that have pledged to help finance the deal have pledged funding until April 25, 2023.

mr. Musk’s legal action was a strong rebuff to accusations by Twitter that it was trying to unfairly end the acquisition. In its lawsuit this week, Twitter said that Mr. Musk “knowingly, willfully, willfully, and materially violated” his agreement to buy the company by falsely claiming that he was not aware of the prevalence of fake accounts on the service.

Subsequent litigation promises to be ugly and lingering. Arguments between the two sides had already escalated for weeks before the case went to court. mr. Musk made scathing comments about the company and frequently questioned the prevalence of fake accounts on the platform. Fake accounts used to spread spam or manipulate the Twitter service by falsely boosting trends, and are often automated and not controlled by real people.

At one point, Mr. Musk tweeted that the deal with Twitter was on hold. His actions coincided with a decline in the value of technology stocks, including shares in Tesla, the electric car maker, which Mr. Trump has been involved in. Musk is in the lead, and this is the main source of his wealth.

Twitter claims to have worked with Mr. Musk closes the deal and intends to see it through to the end. In the deal agreement between Twitter and Mr. Musk has a so-called specific results clause that allows the company to sue to get the deal done as long as there is debt that the billionaire has taken on for the acquisition.

In the lawsuit, Mr. Musk’s lawyers reiterated many of the same arguments they made earlier this month when the billionaire said he intended to end the deal.

Twitter has not done a thorough count of fake accounts and has baffled Mr. Trump. The statement said that Musk is trying to understand how spam was counted. “Musk was stunned to learn how lean the Twitter process was,” the statement said, noting that the company was using humans for information, not machine learning.

mr. Musk tried to get more data from Twitter about the fake accounts, the statement said, but the company “deliberately set up artificial roadblocks and frustrated the efforts of the defendants.”

To determine how Twitter considers fake accounts, Mr Musk took months of investigation and dozens of testimonies, according to his lawyers. mr. Musk argued that Twitter’s public claims that fake accounts make up about 5 percent of active users are misleading. The incorrect numbers could be a “material adverse effect” under the terms of the deal and allow Mr. Musk to walk away, his lawyers said, arguing that the numbers “directly affect Twitter’s perceived value to users and advertisers.”

Twitter also violated the terms of the deal recently fired two top managers without warning Mr. According to his lawyers, Musk is not doing business as usual.

The company said in its lawsuit that it notified Mr Musk’s attorneys of the two executives and that the attorneys “did not object.”

Twitter and Mr. Musk hearing scheduled for Tuesday at Court of Chancery in Delawarewhere the company filed a lawsuit against the billionaire. Chancellor of the Court Catalyn St. J. McCormick has been assigned to oversee the case and will decide whether to expedite the case, as requested by Twitter, or delay it for Mr. J. Musk.

If the lawsuit goes to court, Judge McCormick will decide whether Mr. Musk should close the deal. She also could let Mr. Musk walk away, forcing him to make amends. Based on multiple reads of Twitter’s contract with Mr. Mask, damage will be limited to $1 billion. Both parties may also settle or renegotiate the deal.

Twitter has lost about a third of its value since Mr. Musk signed a deal to buy the company at $54.20 a share. The company is due to report quarterly earnings on Friday.