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Twitter rejects Elon Musk’s claims that he was hoodwinked


Twitter on Thursday dismissed Elon Musk’s claims in a Delaware court filing that he was hoodwinked into signing the deal to purchase the social media company, saying that it was “implausible and contrary to fact.”

Musk made the claims in a countersuit that he filed under seal last Friday, which was made public on Thursday.

“In line with Musk, he — the billionaire founding father of multiple firms, advised by Wall Street bankers and lawyers — was hoodwinked by Twitter into signing a $44 billion merger agreement. That story is as implausible and contrary to fact because it sounds,” the filing released by Twitter on Thursday said.

Twitter’s filing is the most recent salvo in what’s build up to be a serious legal showdown between the world’s richest person and the social media giant.

The San Francisco-based company is pushing to resolve months of uncertainty over its fate as Musk tries to walk away from the deal for what he says is Twitter’s misrepresentation of pretend accounts.

Twitter’s filing is the most recent salvo in what’s build up to be a serious legal showdown.AFP via Getty Images

Musk, the chief executive of electrical automobile company Tesla, offered to purchase Twitter for $54.20 per share in April, saying he believed in its potential as a world platform free of charge speech.

But he soured on Twitter as its stock price lagged his takeover bid, and started expressing skepticism that bot and spam accounts represented lower than 5% of users.

Musk sought to back out on July 8 without paying a $1 billion breakup fee, citing Twitter’s failure to supply details on bot and spam accounts. Twitter sued him 4 days later.

The corporate accused Musk of sabotaging the deal since it not served his interests, and casting a pall that disrupted its work and hurt shareholders.

An Oct. 17 trial is scheduled.

Earlier this week, Twitter issued dozens of subpoenas to banks, investors and law firms that backed Musk’s takeover bid, while Musk issued subpoenas to Twitter’s advisers at Goldman Sachs and JP Morgan over their work. 

Legal experts have said Twitter’s requests suggested the corporate desired to know why Musk turned against it, or whether he reneged on his obligation to acquire sufficient financing.

A representative for Musk didn’t immediately reply to a request for comment.

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