February 7, 2023

Elon Musk and Twitter are preparing for another showdown in court as the billionaire launches a counter-suit against the social media giant, which he is suing to cancel a $44 billion contract to acquire the platform.

Tesla and SpaceX CEO Elon Musk, and his legal advisors allege in a recent filing that Twitter deceived them about the social media giant’s “key metrics”, and manipulated its value in an attempt to induce the billionaire to buy the company at a later date. price.

Musk offered to buy Twitter earlier this year, but changed his mind and tried to renege on the agreement by asserting that the social network suffers from far more “spammer” and fake accounts than Twitter has reported.

The filing is accused of fraud and claims that Twitter’s filings with the Securities and Exchange Commission were “far from the truth” and “contain several major misrepresentations or omissions that distort the value of Twitter.”

Elon Musk: Twitter uses bots and lies about the number of users

Twitter claimed in its response that its SEC filings are correct and that the company “made no misrepresentations,” according to the Washington Post and Wall Street Journal.

Musk claims that Twitter is lying about the number of active users and how many bots, and that his allegations of fraud against the company add to the so-called “negative effect” that would allow him to withdraw from the contract, The Verge revealed.

Twitter stated that the idea of ​​”deceiving” Musk into signing the merger was “as unlikely and contradictory to the facts as it appears,” adding that Musk is creating rationales to exit the deal, according to the reports.

As part of the lawsuit against Elon Musk, Twitter has summoned crypto exchange Binance and more than a dozen of Musk’s advisors and potential lenders. Musk revealed in May that he had secured investment from 18 companies, including Binance, to acquire Twitter.

The ‘Father’ and its impact on the crypto community

Elon Musk, the richest man in the world, is a famous Dogecoin fan. In a recent appearance on the Full Send Podcast, “Dogefather” stated that the Dogecoin blockchain has a much higher transaction capacity compared to Bitcoin.

Elon Musk’s impact on the cryptocurrency community has been scientifically proven. According to research conducted by Dr. Lennart Ante for the Blockchain Research Lab, the “Musk effect” is real.

Every time a billionaire comments on Dogecoin on Twitter, the price of this cryptocurrency usually rises relatively quickly.

Twitter describes Musk’s rationale for withdrawing from the takeover agreement as “a story he made up to get out of a merger agreement he no longer finds attractive.”

The trial between Twitter and Elon Musk is set to begin on October 17.

DOGE total market cap at $9.11 billion on the daily chart | Source: TradingView.com

Featured image from Nikkei Asia, chart from TradingView.com

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