Elon Musk accuses Twitter of fraud

Elon Musk accused the leadership of social network Twitter of fraudulent activities and falsifying the “core metrics” of his business, including audience data. This is stated in the published materials of Musk’s response case against the social network.

“This action is due to Twitter’s misrepresentation of the company’s health data, including the “key metrics” used to estimate the number of platform users,” the statement said.

According to the text, Musk relied on the accuracy of the data provided by Twitter to the US Securities and Exchange Commission when reaching the initial agreement to acquire Twitter, but this data turned out to be “far from the truth.” “Rather, it contained a number of material inaccuracies or omissions that led to a change in Twitter’s value when Musk decided to buy the company at an inflated price,” the lawsuit says. In his accusation, Musk insists that Twitter acted in this way to “confuse” first investors and then Musk. “First, Twitter miscalculated the number of fake and spam accounts as part of a plan to mislead investors about the company’s forecasts by focusing on hundreds of millions of monetizable daily active users (mDAUs). Second, while Twitter has aggressively pushed mDAU data as a “base metric” for revenue growth, that metric isn’t as closely related to social network revenue as Twitter would like to believe,” the lawsuit says.

As we wrote earlier, this spring the billionaire announced his plans to buy Twitter. But a few months later, the businessman abandoned the deal due to the fact that the owners of the social network did not provide information about fake accounts. In response, Twitter representatives sued the billionaire.