Twitter Lawsuit: Elon Musk fights back, files a countersuit

Image: The Economic Times

On Friday, billionaire Elon Musk filed a claim against Twitter, more like a fight back against the microblogging giant's lawsuit preventing him from bailing from his $44 billion buyout deal.

The Tesla's owner's countersuit was submitted together with the legal defence against Twitter's claim that the billionaire was contractually bound to complete the deal he inked in April to buy Twitter, the Chancery Court in the state of Delaware said in a notice.

Mr Musk submitted a 164-page filling which he did as "confidential", which means the public does not have access to the document.

However, court rules require that Mr Musk submit a public version of the filing with redacted trade secrets or other sensitive information.

Recall that our earlier report on this issue has it that a judge ordered a five-day trial over Twitter's lawsuit against Musk to begin on October 17.

Prior to the lawsuit, the Tesla big guy seduced the Board of Twitter with an offer of $ 54.20 per share; down the line, in July, Musk announced that he was pulling the plug on their agreement. He claimed that the company misled him as it relates to the tally of fake and spam accounts.

As of Friday, Twitter's share price closed at $ 41.61 and has stuck by its estimates regarding accounts run by software "bots" as against people and argued that Musk is contriving excuses to back out of the contract.

However, Twitter has urged shareholders to endorse the deal, setting a vote on the merger for September 13.

"We are committed to closing the merger on the prices and terms agreed upon with Mr Musk," said Chief Executive of Twitter, Agrawal Parag and Chairman of Twitter Board, Bret Taylor, in a copy of a letter to investors.

Billions of dollars are at stake, as well as the future of Twitter, which Musk said should allow legal speech - a position that has triggered fears the network could be used to incite violence.

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