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The Counterclaim by Musk
Elon Musk, the CEO of Tesla, has filed a countersuit against Twitter accusing the social media platform of fraud. To compel him to complete the 44 billion USD purchase of the platform, Twitter launched a lawsuit against the tycoon. The Musk parties present their cross-claims for contract violation and rescission based on Twitter’s deception. Elon Musk, CEO of Tesla and SpaceX, has counter-sued Twitter after the social media company sued him for pulling out of the 44 billion USD plan to acquire the platform.
In his counterclaim, Musk, who was served on Thursday, claims that the reason for this lawsuit is that Twitter misled the Musk parties about the state of the business and the important indicators it relies on to gauge the number of users on its platform. As part of a plan to mislead investors about the company’s potential by concentrating on its ostensible hundreds of millions of mDAU, Musk claimed that Twitter was undercounting the number of fraudulent and spam accounts on its network. mDAUs are the users who signed in and visited Twitter on any given day either Twitter.com or Twitter apps that are able to show advertisements, according to the social media corporation.
Is Twitter a Liar?
However, after agreeing to the merger deal, the Musk parties discovered unsettling data that seriously questioned Twitter’s claims. Musk’s attorneys stated that while Twitter requests the court to order the Musk parties to dissolve due to Twitter’s misrepresentations and contractual breaches, the Musk parties seek relief from the egregious injustice of such a result.
They added that In light of Twitter’s deceit, the Musk parties thus present their counterclaims for contract violation and rescission. On Thursday, Twitter responded to Musk’s countersuit, accusing the Tesla CEO of cherry-picking data and misrepresenting how its online advertising platform functions. In reaction to Musk’s claims, Twitter board member Bret Taylor tweeted that
in response to Mr. Musk’s counterclaims, Twitter issued a rebuttal. His assertions are legally deficient, factually incorrect, and irrelevant from a business standpoint. The trial in the Delaware Court of Chancery is something we are anticipating.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
