UPDATE 3-Twitter rejects Musk’s claims that he was hoodwinked

(Updates with quotes from submitting)

By Noeleen Walder and Tom Hals

NEW YORK, Aug 4 (Reuters) – Twitter Inc on Thursday dismissed Elon Musk’s claims in a Delaware courtroom submitting that he was hoodwinked into signing the deal to buy the social media agency, saying that it was “implausible and Reverse to actuality.”

Musk made the claims in a countersuit filed beneath seal ultimate Friday, which was made public on Thursday.

“In accordance with Musk, he — the billionaire founding father of numerous companies, steered by Wall Avenue bankers and attorneys — was hoodwinked by Twitter into signing a $44 billion merger settlement. That story is as implausible and Reverse to actuality as a result of it sounds,” the submitting launched by Twitter on Thursday talked about.

Twitter’s submitting is the latest salvo in what’s developing as a lot as be an rising acrimonious approved showdown between the world’s richest particular person and the social media large.

The two sides head to trial on Oct. 17 after Musk sought to abandon his deal to amass Twitter over what he says is a misrepresentation of fake accounts on the placement.

The San Francisco-based agency is trying to drive Musk to look at by on the deal and accuses him of sabotaging it on account of it not served his pursuits.

A guide for Musk did not immediately reply to a request for comment.

Throughout the counterclaims made public Thursday, Musk accuses Twitter of stepping up efforts to cover the true number of its clients, as a result of the market plummeted.

“As a protracted bull market was coming to an in depth, and the tide was going out, Twitter knew that providing the Musk Occasions the information they’ve been requesting would reveal that Twitter had been swimming naked,” the counterclaims say.

Twitter counters that Musk has not “leaded a shred of proof” for these “fact-free” allegations.


Musk moreover claims that “Twitter’s misrepresentations run far deeper than merely providing incorrect numbers” about its spam or false accounts.

Whereas “Twitter touts having 238 million ‘monetizable every single day energetic clients,’ these clients who actually see commercials” is roughly 65 million lower, Musk says inside the counterclaims.

Twitter maintains that its SEC disclosures about monetizable every single day energetic clients have been right.

Musk, the chief authorities {of electrical} vehicle agency Tesla Inc , supplied to buy Twitter for $54.20 per share in April, saying he believed in its potential as a worldwide platform completely free speech.

Nonetheless he soured on Twitter as its stock price lagged his takeover bid, and commenced expressing skepticism that bot and spam accounts represented decrease than 5% of consumers.

Musk sought to once more out on July 8 with out paying a $1 billion breakup cost, citing Twitter’s failure to supply particulars on bot and spam accounts. Twitter sued him 4 days later.

Earlier this week, Twitter issued dozens of subpoenas to banks, merchants and laws companies that backed Musk’s takeover bid, whereas Musk issued subpoenas to Twitter’s advisers at Goldman Sachs and JP Morgan over their work.

Licensed consultants have talked about Twitter’s requests advisable the company wanted to know why Musk turned in opposition to it, or whether or not or not he reneged on his obligation to amass sufficient financing. (Additional reporting by Anirban Sen and Greg Roumeliotis, Enhancing by Deepa Babington)