Elon Musk’s countersuit against Twitter accuses the social media giant of misleading investors.
As per the suit, Musk accused Twitter of deliberately miscounting the number of spam accounts on its platform.
The suit continued and noted that this miscounting was part of a “scheme to mislead investors about the company’s prospects”.
Further, it notes that Twitter’s disclosures to the Securities and Exchange Commission are inaccurate and distorted the company’s value.
The suit says Twitter had:
Numerous material misrepresentations or omissions that distort Twitter’s value and caused the Musk Parties to agree to acquire the company at an inflated price.
Twitter, for its sake, published a response to Musk’s countersuit and noted that Musk’s arguments for abandoning the deal were:
A story, imagined in an effort to escape a merger agreement that Musk no longer found attractive once the stock market and along with it, his massive personal wealth, declined in value. The counterclaims are a made-for-litigation tale that is contradicted by the evidence and common sense.
The main suit and the countersuit will see their day in court starting on October 17 if the schedule remains intact.
At least to say, the saga of Musk vs Twitter is not ending anytime soon, but these suits are certainly going to generate some drama.