The legal battle between Twitter and Elon Musk over the social media network’s failed acquisition deal is growing increasingly complex, and Twitter has now sued Binance.
Twitter is suing companies involved with Elon Musk in the acquisition, including Binance.
Twitter lawyers involved in lawsuit against Elon Musk over his failed $44 billion acquisition are ready to subpoena dozens of companies that were somehow involved in the takeover bid made by Elon Musk to acquire Twitter.
Among the companies named are cryptocurrency exchange Binance, Factorial Funds, Benefit Street, Bandera Partners, Founders Fund Growth II Management, Credit Suisse and Morgan Stanley. Twitter’s lawyers want to know the details of the conversations it had with Elon Musk in the tense days when he reportedly decided to back out of the $44 billion purchase.
In response, Musk’s attorneys decided to call Goldman Sachs and JP Morgan as witnesses, seeking clarification on the advice they gave Twitter when selling the company.
For his part, Elon Musk continues to claim that Twitter has not provided the necessary documents to have an idea of the number of fake profiles existing on the social network. Twitter’s response, anticipated via the social network on July 8 by its CEO Bret Taylor, was to sue the billionaire owner of Tesla to force him to honor his commitments.
The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement. We are confident we will prevail in the Delaware Court of Chancery.
—Bret Taylor (@btaylor) July 8, 2022
According to Musk, Twitter’s public statements about the prevalence of bots are misleading and he recently formally requested that they be made public by a judge to prove that they exceed mDAUs’ estimate of less than 5% (monetizable Daily Active Users).
The data doesn’t match and Elon Musk is trying to close the deal
Twitter does not deny that this estimate may be wrong, but at the same time considers this fact as a mere pretext to be able to withdraw the submitted purchase offer.
In a separate subpoena, issued to companies involved in the operation, Twitter asked them to turn over all documents and communications related to Musk’s May 17 tweet, citing “some possibility“than Twitter bots and/or percentage of fake or spam accounts”can exceed 90%” daily active users.
Twitter claims that >95% of daily active users are real, unique humans. Does anyone have that experience?
— Elon Musk (@elonmusk) May 17, 2022
Twitter’s lawyers say the bot data clause was not present anywhere in the deal, while Musk’s lawyers say it’s needed to:
“facilitate Musk’s financing and financial planning for the transaction and engage in business transition planning […]”.
The trial is scheduled to start on October 17, but given the premises, it is certain that the battle will be very tough between the two parties in the coming months, and there will certainly be no shortage of surprises.
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