Tesla CEO, Elon Musk has accused Twitter of fraud in a lawsuit filed on July 29, 2022.
According to a report by a Washington Examiner, Musk argued that the microblogging platform’s true value was much lower than the amount he had agreed to pay.
It would be recalled that Musk had offered to buy Twitter at $44 billion but backed out of the acquisition deal in July. He stressed that the deal was based on the premise that the social media platform was in good condition.
Musk said an investigation showed that the number of bot accounts exceeded the officially reported figure, adding that the company deliberately gave false information to prop its metrics.
He also said Twitter had shared false information, noting that the company disclosed it has 238 million monetization daily active users, but those who actually see ads was 65 million less than the firm’s representation.
Musk said, “The majority of ads are served to less than 16 million users – a mere fraction of the 288 million.”
Reacting, Twitter described Musk’s countersuit as an attempt to excuse his failure to fulfil his end of their agreement, noting that the company had addressed his latest claim in a 127-page filing calling it mischievous.
Twitter’s chairman, Bret Taylor, said they are fully prepared to meet during the trial to be held on October 17 at the Delaware Court of Chancery.