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News reports: Musk countersuit accuses Twitter of fraud

Elon Musk accused Twitter of fraud in a countersuit over his aborted $44 billion deal for the social media marketing company, which he said held back necessary data and misled his team about its true user base, in accordance with media reports.

Based on the Washington Post, the countersuit filed by the billionaire and Tesla CEO filed Thursday alleges that Twitter committed fraud, breach of contract and violation of the Texas Securities Act.

Musks counterclaims were filed confidentially the other day and unsealed in a filing late Thursday at the Delaware Chancery Court, the Wall Street Journal reported.

Musk had wanted to choose the company earlier this season, then tried to back from the deal by claiming the social platform was infested with much bigger amounts of spam bots and fake accounts than Twitter had disclosed.

Twitter sued to force him to perform the acquisition. Musk responded by filing his countersuit.

Musks attorneys argued that Twitters own disclosures revealed that it has 65 million fewer monetizable daily active users, who is able to be shown digital ads, compared to the 238 million that Twitter claims, the Post and the Journal reported.

The filing also said the majority of Twitters ads are shown and then a sliver of the companys user base, the Post said.

Within an unexpected twist, Twitter filed its response denying Musks accusations before Musks own counterclaims surfaced.

Twitter called Musks reasoning a tale, imagined in order to escape a merger agreement that Musk no more found attractive.

The case is scheduled to visit trial on October 17.

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