The dispute between Twitter and Elon Musk goes into the next round. After Musk canceled the takeover and Twitter sued him, Musk is now suing back. The contents of the countersuit have not yet been made public.
Failed Twitter takeover
The dispute, which has so far culminated in two lawsuits, began with Musk’s announcement that he wanted to take over the short message service Twitter. An offer was initially rejected by Twitter’s board of directors, but then accepted. The contract was subsequently signed, with Musk committing himself to buying the company for $54.20 per share. Already shortly thereafter, disagreement prevailed. Musk, for example, publicly called on Twitter to provide him with information about fake and spam profiles on the platform. He stated that he needed this information in order to assess the platform’s potential, and at the same time claimed that the proportion of spam profiles was far higher than Twitter had previously indicated. According to independent assessments, Musk’s statement is incorrect. According to various organizations, his perception can be attributed to a statistical bias: Musk probably has the highest number of fake profiles among his followers among all Twitter users, which in turn can be attributed to his conspicuous behavior on the platform.
Twitter repeatedly emphasized that the proportion of corresponding profiles is less than five percent of the total number of profiles. Musk was not satisfied with the figures and put the purchase on hold – which Twitter believes violates the contract. The company sued to have the purchase enforced through the courts.
What is Musk’s counterclaim aimed at?
Musk has now had a 164-page statement of claim submitted, the contents of which are as yet unknown to the public. His lawsuit against Twitter should only have a chance of success if he can prove that the short message service made false statements or violated the terms of his contract. What exactly Musk is accusing Twitter of should become known in the next few days. In all likelihood, the billionaire will aim to prove that Twitter withheld material information from him – and thus stick to the previous accusation against the company. The case will be heard during the week of October 17-21 this year.
Another lawsuit against Musk
Largely under the public’s radar, meanwhile, another lawsuit has been filed against Musk in connection with the dispute over the bounced Twitter acquisition. A Twitter shareholder is seeking damages, claiming Musk breached his fiduciary duties to him. These fiduciary duties, in turn, are based on the fact that Musk already holds a large portion of the company’s shares, 9.6 percent. This lawsuit could be joined by anyone who also holds Twitter shares.