Elon Musk alleges fraud in countersuit. Twitter says it was ‘not ripped off’ by the merger

By mahaneo

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Elon Musk: Musk’s lawyers are claiming in a recent filing that Twitter misrepresented information about the company and its “key metrics” and distorted its value to get the billionaire to agree to buy the social media platform at an inflated price.

The allegations were detailed in a countersuit made public on Thursday. The filing alleges fraud and that Twitter made statements in its Securities and Exchange Commission disclosures that were “far from true” and “made numerous, material misrepresentations or omissions that distorted Twitter’s value.”

Elon Musk on twitter

Twitter said in its response that its SEC disclosures were accurate and that the company had “not misrepresented anything.”

Twitter said the claim that Musk was “tricked” into signing the merger was “as implausible and untrue as it sounds,” and accused Elon Musk of making excuses to get out of the deal.

Twitter sued Musk last month after he tried to back out of a deal to buy the company for $54.20 per share, or $44 billion, and take it private. Since Musk first bid for Twitter in April, the social media platform’s share price has fallen to $41, leading some, including Twitter, to speculate that Musk is seeking a lower price for the company.

Elon Musk and Twitter

Elon Musk on Twitter

Musk, in turn, has accused Twitter of withholding data about the volume of fake and spam accounts on its site, arguing that the company has misled investors about how many active users it actually has. Much of the countersuit is focused on those accounts and the number of active users.

Twitter has responded to those claims by saying in the past that it has provided Musk with all the information he requested. Now, Twitter is going to court to force Musk to follow through with the sale.

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