twitter-embarks-on-a-“giant-harassing-fishing-expedition”-in-response-to-elon-musk’s-countersuit

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Elon Musk and Twitter proceed to play a high-stakes game of poker, replete with gambits and countermoves in a weirdly fascinating show of one-upmanship.

As most of our readers would know by now, Twitter has initiated authorized proceedings towards Elon Musk for abandoning the settlement to take the social media big personal in a $44 billion deal. Musk had cited Twitter’s failure to satisfactorily show the constancy of its Monthly Active Users (MAUs) metric as a significant stumbling block to the consummation of the deal, repeatedly casting aspersions on Twitter’s claims that lower than 5 p.c of the lively accounts on the platform might be outlined as bots or faux accounts. Musk additionally took exception to Twitter’s latest determination to fireside two key executives in addition to lay off a 3rd of its expertise acquisition group.

Meanwhile, Twitter has repeatedly said that the quantum of bots on its platform shouldn’t be a fabric authorized obstacle to the consummation of the takeover deal, particularly as Elon Musk had waived due diligence through the negotiations part.

The high-stakes 5-day authorized showdown between Elon Musk and Twitter is now scheduled to happen in October 2022.

This brings us to the crux of the matter. Elon Musk launched a countersuit towards Twitter on Friday, searching for class standing. The CEO of Tesla asserted that he had a fiduciary obligation towards Twitter’s shareholders on the again of his 9.6 p.c stake within the social media big. Musk additionally careworn that the takeover settlement had granted him “veto” powers over lots of Twitter’s choices. Readers ought to notice that the precise textual content of this countersuit is but to be made public.

In response to this move by Elon Musk, Twitter has filed sweeping subpoenas and doc requests towards the CEO of Tesla’s associates within the deal, together with buyers comparable to Chamath Palihapitiya, David Sacks, Steve Jurvetson, Marc Andreessen, Jason Calacanis, and Keith Rabois.

Twitter has additionally subpoenaed Morgan Stanley and the Bank of America, each of that are helping Musk within the takeover deal. Specifically, Twitter is searching for information associated to the deal’s financing, together with “checklists, timelines, presentations, decks, organizational calls, meetings, notes, recordings,” as per the reporting by The Post.

Finally, Twitter is searching for further data associated to Elon Musk’s communication within the runup to and through Twitter’s all-hands assembly final month, where the CEO of Tesla had speculated that the deal may nonetheless go forward however at a cheaper price. Bear in thoughts that Musk had positioned the deal on hold only a few days earlier than this assembly.

lol, attorneys w/ TWTR are sending subpoenas to pals within the ecosystem round @elonmusk and @pmarca and @DavidSacks et al, an enormous harassing fishing expedition.

I’ve nothing to do with this other than a number of snarky feedback, however acquired a “YOU ARE HEREBY COMMANDED” doc discover.

— Joe Lonsdale (@JTLonsdale) August 1, 2022

Meanwhile, Joe Lonsdale, an affiliate of Elon Musk, has taken a dim view of Twitter’s newest step, terming it a “giant harassing fishing expedition.”