Twitter says Musk analysts don't have evidence of fake accounts

Twitter assures Musk analysts don't have evidence on fake accounts

UPGRADE DAY

According to Twitter lawyers, analysts paid by Elon Musk failed to prove that the proportion of fake accounts on the network was “significantly higher” than that estimated by the platform, the key argument of the Tesla boss to justify his withdrawal from the network takeover agreement. 

The two parties discussed the legal elements to be provided during a preliminary hearing in the United States organized via Zoom on Tuesday, three weeks before an unprecedented trial on this contract worth 44 billion dollars.

Lawyers for the world's richest man have again called for access to more data on inauthentic or scam accounts, and methods for calculating the number of “monetizable, daily active users”. p>

Elon Musk indeed argues, in his letter of July 8 announcing the breach of contract, that the proportion of spam “greatly” exceeds the 5% of accounts estimated by Twitter.

But two analysis companies of data hired by the businessman, Cyabra and CounterAction, put that rate at 11% and 5.3%, respectively, said Brad Wilson, a Twitter attorney.

“None of these reports does not even remotely support what Mr. Musk said to Twitter and to the world in his July 8 letter,” Mr Wilson said.

At the beginning of July, the San Francisco-based group launched legal proceedings against Elon Musk, to force him to honor the acquisition contract signed at the end of April.

According to the board of directors, the question of fake accounts is a pretext put forward by the multi-billionaire, who would have changed his mind when he saw the value of companies falling on the stock market in recent months.

“Quick point”

“Let's skip the rhetoric and get to the heart of the matter,” exclaimed Judge Kathaleen McCormick, after more than three hours of argument where both sides accused each other of obstructing or abusing attorney-client privilege. .

Those of Elon Musk believe in particular that Twitter asks them for too much information on their exchanges with Peiter Zatko, former head of security of the social network turned whistleblower, who accused this summer of his former company of covering up computer vulnerabilities and lying about its fight against fake accounts.

At the beginning of September, the judge authorized the defense to include these accusations in its arguments. 

Before this surprise intervention, the market gave the advantage to Twitter, the law being a priori favorable to the respect of contracts . 

The president of the court granted the company a speedy trial, while the multi-billionaire wanted to wait until next year and demanded astronomical amounts of data.

The trial is due to take place from October 17 to 21 in a specialized court in the state of Delaware (east coast of the United States), shortly after Elon Musk's closed-door testimony, which was postponed to October 6 and 7. , according to the summons consulted by AFP.

The legal battle could lead to “an agreement, the payment of costs for breach of contract, the obligation to buy Twitter as planned and a myriad of 'other results,' said Dan Ives of Wedbush Securities in a note on Tuesday.

The analyst also continues to believe “possible that the parties negotiate behind the scenes”.