The legal battle between Twitter and Elon Musk over the social media network’s failed acquisition deal is growing more complex, and Twitter has now sued Binance.
Twitter is suing the companies involved with Elon Musk in the acquisition, including Binance.
Twitter’s lawyers involved in the lawsuit against Elon Musk over his failed $44 billion acquisition are ready to subpoena dozens of companies that were involved in some way with Elon Musk’s bid to acquire Twitter.
Among the companies named are crypto-currency 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 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 lawyers have decided to subpoena Goldman Sachs and JP Morgan as witnesses, seeking clarification on the advice they gave to Twitter during the company’s sale.
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 respect 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 so that it could be proven that they exceed the estimate of less than 5% of mDAUs (monetizable Daily Active Users).
The data doesn’t match and Elon Musk tries 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, addressed to the companies that played a role in this transaction, Twitter demanded that they turn over all documents and communications related to Musk’s May 17 tweet, referring to “some possibility“that Twitter bots and/or the percentage of fake or spam accounts”may exceed 90%.” of 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 nowhere in the agreement, while Musk’s lawyers say it’s necessary for :
“facilitate Musk’s financing and financial planning for the transaction and engage in transition planning for the business. […]”.
The trial is scheduled to begin on October 17, but given the premise, it is certain to be a very tough battle between the two sides over the next few months, and there will certainly be no shortage of surprises.