You may have heard of the situation with multi-billionaire Elon Musk and Twitter, a situation that has been unfolding since April. The latest in the Musk-Twitter dispute is an allegation Musk has directed at the social media company – the allegation of fraud, reports The New York Times.
Musk accuses Twitter of fraud because of the number of fake accounts on the platform
After Musk pulls out of $44 billion deal to purchase Twitter, now accusing social media platform of fraud. Earlier, Twitter sued him for withdrawing from a deal that had already been accepted. The social media platform claimed that Musk had halted the acquisition due to the stock market turbulence. And then Musk retaliated and now claimed in a legal filing that Twitter had hidden the actual number of fake accounts and therefore accused the company of fraud.
Musk’s team stated that fake accounts (that weren’t real people) accounted for at least 10% of Twitter’s daily active users who see ads. Such concerns were raised shortly after the deal was signed in April. However, Twitter has constantly disputed this claim, stating that these fake accounts represent less than 5% of daily users on the platform.
Musk’s lawyers also stated that Twitter hides the number of users who see ads. According to the filing, 65 million of Twitter’s 229 million daily active users saw no ads in the first quarter of this year.
On the other hand, Twitter claims that Musk tried to scramble the data and maintain the numbers it has stated since the beginning.
Nevertheless, Musk’s team used Botometer, a tool designed by Indiana University, to measure those bot accounts. In addition, the findings were preliminary and would be expanded.
Musk claims that Twitter did not provide an accurate number of fake accounts with the aim of misleading investors. This all turns into a lengthy legal battle between the two sides. For the time being, there is a trial period for October.
Twitter has also responded to Musk’s claim in a legal applicationstating that the Botometrar tool is unreliable and that even Musk’s account was previously very likely a bot.
Elon Musk and Twitter: A Brief Recap of What Happened
Okay, if you haven’t been following the situation with Twitter’s acquisition deal and the next legal battle, don’t worry — here’s a quick rundown of what’s happened so far since April of this year. On April 5, 2022, Elon Musk was appointed to Twitter’s board (this was before proposing an offer to buy Twitter) and was welcomed by Twitter’s CEO in a tweet.
Not long after, however, on April 11, Musk announced that he will not be on Twitter’s board.
On April 14, Musk offered $41 billion to buy the entirety of Twitter and turn it into a private company, in an effort to safeguard free speech (and whatever his agenda was, no one knows).
Then, on April 25, Twitter agreed to be bought out by Musk for $44 billion or $54.20 per share in cash. And then, on May 13, Musk put the deal on hold over the aforementioned concerns about the number of fake bots.
Then, on July 8, Musk’s lawyers sent a letter to Twitter’s top lawyer explain that the billionaire wants to pull out of the deal.
On July 12, Twitter sued Musk in Delaware Chancery Court, alleging he has refused to honor his obligations to Twitter and its stakeholders “because the deal he signed no longer serves his personal interests.”
As you know, in such legal disputes, it can take some time for the court to resolve the matter.