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Twitter frantically closed gates on information: Elon Musk

As the court battle heats up between Elon Musk and Twitter, the Tesla boss alleged that the social media platform misled him on key business aspects before he agreed to a $44 billion buyout.  

Noting that the number of users who can be shown advertising on the platform is significantly lower than the firm’s claim, Musk said in a filing to a Delaware court, “Twitter’s disclosures have slowly unraveled, with Twitter frantically closing the gates on information in a desperate bid to prevent the Musk Parties from uncovering its fraud.” 

Meanwhile, Twitter rejects Musk’s claim saying his  argument is “as implausible and contrary to fact as it sounds.”

“According to Musk, he — the billionaire founder of multiple companies, advised by Wall Street bankers and lawyers — was hoodwinked by Twitter into signing a $44 billion merger agreement,” Twitter adds.

Fighting back against Twitter’s lawsuit, Musk last week filed his countersuit along with a legal defense against the social media platform’s claim that the billionaire is contractually bound to complete the takeover deal. Twitter, meanwhile, argued in its filing, “The counterclaims are a made-for-litigation tale that is contradicted by the evidence and common sense.” Musk’s countersuit was finally made public on Thursday.

A five-day trial that will consider Twitter’s lawsuit against Musk has been scheduled for October 17.

Earlier this year, Musk announced his willingness to buy Twitter with a $54.20 per-share offer. However, in July, he backed off alleging that the firm had misled him regarding its tally of fake and spam accounts.

Twitter, whose stock price closed at $41.06 on Thursday, has stuck by its estimates that less than five percent of the activity on the platform is due to software “bots” rather than people.

Twitter told the court that Musk’s claim that the false account figure tops 10 percent is “untenable.” It also accused Musk of contriving a story to escape a merger agreement that he no longer found attractive.

“Twitter has complied in every respect with the merger agreement,” the company said in the filing made to Chancery Court in the state of Delaware and also added, “Musk’s counterclaims, based as they are on distortion, misrepresentation, and outright deception, change nothing.”

(With inputs of agencies)

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