Musk files countersuit against Twitter

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Elon Musk has filed a countersuit against Twitter Inc under seal, escalating his legal fight against the social media company over his bid to walk away from the $US44 billion ($A63 billion) purchase.

The 164-page document was not available, although under court rules a redacted version could soon be made public.

"I have reviewed the counterclaims and declare that the matter contained therein insofar as it concerns my acts and deeds is true, and insofar as it relates to the acts and deeds of any other person, I believe it to be true," said an accompanying filing signed by Musk.

The Tesla CEO and SpaceX chief said he was walking away from the deal on July 8, blaming Twitter for breaching the merger agreement by misrepresenting the number of fake accounts on its platform.

Twitter sued days later, calling the fake account claims a distraction and saying Musk was bound by the merger contract to close the deal at $US54.20 ($A77.71) per share. The company's shares were up 1.4 per cent in morning trading on Friday at $US41.45 ($A59.43).

Twitter has blamed the court fight for slumping revenue and causing chaos within the company.

The two sides had basically agreed to an October 17 trial, but were at odds over the limits of discovery, or access to internal documents and other evidence.

Musk accused Twitter this week of dragging its feet in response to his discovery requests, and Twitter accused him of seeking huge amounts of data that are irrelevant to the main issue in the case: whether Musk had violated the deal contract.

Musk also faces a week-long trial in Wilmington, Delaware, beginning October 24. A Tesla shareholder is seeking to void as corporate waste and unjust enrichment the CEO's record-breaking $US56 billion ($A80 billion) pay package from the electric vehicle maker.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting