- Wall Street, Europe rise as Chinese shares tumble
- Hunkering down for Hurricane Milton at Disney -- but first, a few rides
- Reddy, Rinku power India to 221-9 in second Bangladesh T20
- Overshooting 1.5C risks 'irreversible' climate impact: study
- Time running out in Florida to flee Hurricane Milton
- Demis Hassabis, from chess prodigy to Nobel-winning AI pioneer
- The long walk for water in the parched Colombian Amazon
- Biden-Netanyahu to talk as Hezbollah, Israeli forces clash
- France vows to step up drugs fight after police vehicles torched
- Air France says jet flew over Iraq during Iran attack on Israel
- Activists target Picasso work to protest Israel arms sales
- Let 'Emily in Paris' remain in Paris, Macron says
- Global stocks diverge as Chinese shares tumble
- Time runs out in Florida to flee Hurricane Milton
- Chad issues warning ahead of more devastating floods
- Record-breaking Root helps England dominate Pakistan in first Test
- German govt sees economy shrinking again in 2024
- Ex-UK soldier denies passing secrets to Iran intelligence
- Creator's death no bar to new 'Dragon Ball' products
- Three Kosovo Serbs on trial over 'secession plot' attack
- Van Gogh museum to launch Impressionism show
- French minister ups ante in Eiffel Tower Olympic rings row
- Japan PM calls snap election to 'create a new Japan'
- German police shut pro-Palestinian camp over Thunberg invite
- Chinese stocks tumble on lack of fresh stimulus
- Trio wins chemistry Nobel for protein design, prediction
- SE Asian summit urges end to Myanmar violence but struggles for solutions
- Wimbledon replaces line judges with electronic system
- Record-breaking Root hits hundred as England power to 351-3
- Record-breaking Root hits hundred as England's power to 351-3
- Sabalenka relishes 'much-needed' tennis rivalry with Swiatek
- Liverpool goalkeeper Alisson set for six weeks out
- Taylor Swift got police escort to London gigs after Austria terror plot
- Cook tips Root to break Tendulkar's all-time runs record
- British skull auction sparks Indian demand for return
- Joe Root: England's elegant Test record-breaker
- Braving war: Lebanon's 'badass' airline defies odds
- Klopp to return as head of Red Bull football operations
- Hezbollah strikes Israel, says it foiled Israeli incursions
- Jurgen Klopp to return as head of Red Bull football operations
- Sinner to face Medvedev in Shanghai Masters quarter-finals
- US weighs Google breakup in landmark trial
- Record-breaking Root guides England to 232-2 in reply to Pakistan's 556
- Japan PM dissolves parliament for 'honeymoon' snap election
- Chinese stocks tumble on stimulus upset, Asia tracks Wall St higher
- 7-Eleven owner confirms new takeover offer from Couche-Tard
- Goodbye Tito? Tomb at risk as Serbs argue over Yugoslav legacy
- Restoration experts piece together silent Sherlock Holmes mystery
- Sinner avoids Shanghai deja vu with assured Shelton win
- Pyongyang to 'permanently' shut border with South Korea
CMSD | 0.04% | 24.8622 | $ | |
CMSC | 0.28% | 24.71 | $ | |
JRI | 0.38% | 13.21 | $ | |
RIO | -0.51% | 66.325 | $ | |
BCC | 0.81% | 143.175 | $ | |
BCE | -0.36% | 33.39 | $ | |
SCS | 2.56% | 13.116 | $ | |
RBGPF | -2.48% | 59.33 | $ | |
NGG | -0.17% | 65.79 | $ | |
RYCEF | -1.01% | 6.9 | $ | |
GSK | 0.85% | 38.345 | $ | |
RELX | 0.05% | 46.665 | $ | |
BTI | 0.91% | 35.545 | $ | |
AZN | 0.41% | 77.19 | $ | |
BP | -0.17% | 31.975 | $ | |
VOD | 0.72% | 9.73 | $ |
Musk accuses Twitter of fraud as buyout battle escalates
Elon Musk has accused Twitter of fraud, alleging the social media platform misled him about key aspects of its business before he agreed to a $44 billion buyout, as their court fight heats up.
The Tesla boss lodged the claim late Thursday as he fights back against Twitter's lawsuit seeking to force him to close the deal, which he has tried to cancel.
Musk argued in the filing to a Delaware court that the number of users actually shown advertising on the platform is about 65 million lower below the firm's 238 million figure.
"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," the claim alleged.
Musk is asking the court to free him from the agreement and make Twitter pay him an amount in damages to be determined at trial, which set to open on October 17.
Billions of dollars are at stake, but so is the future of Twitter, which Musk has said should allow any legal speech -- an absolutist position that has sparked fears the network could be used to incite violence.
In its own filing, Twitter rejected the mercurial billionaire's argument, calling it "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 said.
Musk last week filed his countersuit, which was finally made public on Thursday, along with a legal defense against Twitter's claim that he is contractually bound to complete the takeover deal.
The entrepreneur accused Twitter of not just deceiving him, but also of lying to US market regulators.
Musk relied on Twitter's filings to the Securities and Exchange Commission because he thought doing his own diligence -- digging into the company's value -- "costly and inefficient", his court claim said.
- 'Twitter has complied in every respect' -
The legal fight is gathering speed as preparations have begun for the five-day trial in Delaware's Chancery Court, which specializes in complex, high-stakes business world battles.
This battle flows from Musk wooing Twitter's board with a $54.20 per-share offer in April, but then in July announcing he was terminating their agreement because the firm had misled him regarding its tally of fake and spam accounts.
Twitter, whose shares were up about 3.5 percent to $42.51 on Friday, has stuck by its estimates that less than five percent of the activity on the platform is due to software "bots" rather than people.
The social media platform told the court that Musk's claim that the false account figure tops 10 percent is "untenable."
Twitter also disputed Musk's assertion he has the right to walk away if its bot count is found to be wrong, since he didn't seek information on that topic when he made the buyout offer.
The company accuses 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.
"Musk's counterclaims, based as they are on distortion, misrepresentation, and outright deception, change nothing."
The social media platform has urged shareholders to endorse the deal, setting a vote on the merger for September 13.
While fielding questions at an annual Tesla shareholders meeting Thursday, Musk was asked whether his potential ownership of Twitter might distract from his running of the electric car company.
"I think Tesla, you know, would continue to do very well even if I was kidnapped by aliens, or went back to my home planet," he jokes, drawing laughter and applause.
"To be frank, I don't have an easy answer," Musk added.
He assured shareholders that, for now, he has no plans to leave his Tesla chief role.
Y.Aukaiv--AMWN