Elon Musk Claims Twitter Is ‘Resisting & Thwarting’ His Right to Information About Fake Accounts
Elon Musk is hitting back at Twitter.
In a letter sent to the social media site on Monday morning (June 6), an attorney for the Tesla CEO wrote that the company “is actively resisting and thwarting his information rights” in regards to a dispute over spam accounts, and threatened to terminate the deal.
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In May, Elon said that his $44 bullion deal to acquire Twitter was “temporarily on hold” as he sought more information about Twitter’s claim that fake and spam accounts comprise less than 5% of daily active users.
The letter from Elon‘s lawyers was part of a larger SEC filing, in which they stated that the company has “refused to provide the information that Mr. Musk has repeatedly requested since May 9, 2022 to facilitate his evaluation of spam and fake accounts on the company’s platform.”
“This is a clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement,” his lawyers said.
The letter from Elon’s lawyers also said that Twitter is required “to provide data and information that Mr. Musk requests in connection with the consummation of the transaction… Mr. Musk is entitled to seek, and Twitter is obligated to provide, information and data for, inter alia, ‘any reasonable business purpose related to the consummation of the transaction.’”
“If Twitter is confident in its publicized spam estimates, Mr. Musk does not understand the company’s reluctance to allow Mr. Musk to independently evaluate those estimates,” the letter continued.
Last month, Elon suggested that Twitter’s user base could include “20% fake/spam accounts,” four times what the company claims, and it “could be *much* higher.”
Twitter CEO Parag Agrawal responded, “Unfortunately, we don’t believe that this specific estimation can be performed externally, given the critical need to use both public and private information (which we can’t share).”
He went on to note that Twitter has disclosed its estimate regarding spam and fake accounts for years, including in its IPO filing.
Last week, President Joe Biden hit back at Elon‘s comments about the economy. Click here to find out what he said.
Posted To:Elon Musk