Twitter issues subpoenas in lawsuit against Elon Musk

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Twitter’s subpoenas request documents and documents regarding the deal, its funding as well as any information related to “bot” Twitter accounts.

Twitter is trying to discover proof of Elon Musk tried to torpedo the financing of his $44 billion (roughly approximately. 3,46,430 crore) takeover of the social media giant and is also examining the motives behind his decision to pull out on the transaction, legal experts told.

Twitter sent out dozens of civil subpoenas to international banks, including divisions that are part of Morgan Stanley, co-investors in the deal, including one of Brookfield Asset Management’s affiliates Brookfield Asset Management, and Musk advisers as per filings made over the last two days at the Delaware Court of Chancery.

Morgan Stanley declined to comment. Brookfield did not respond immediately to a request to comment. Reps for Musk and Twitter were not available for contact.

Subpoenas are seeking documents and other communications regarding the deal including its financing, information about “bot,” or fake Twitter accounts on Twitter. They also want information they may have on the potential implications for the deal due to changes in the price of Tesla’s stock. automobile maker Tesla Inc, of which Musk is the chief executive.

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Subpoenas are a part of the lawsuit filed by Twitter against Musk in order to hold him to the $54.20 (roughly the equivalent of Rs. 4,270) per share he had signed up to. A trial of five days will begin on October 17, in Delaware Chancery Court.

Experts believe that the subpoenas suggest Twitter would like to know what investors, lenders and advisors were telling one another about the behavior of Musk following the signing of the agreement in the middle of April.

“They suspect that somewhere behind the scenes, he’s conspiring to blow everything to pieces,” said Minor Myers Professor at UConn School of Law.

Musk announced on July 8 the company was pulling out of the agreement because Twitter has allegedly violated the terms of the agreement by not disclosing information regarding fake accounts on the platform. Twitter has stated that the fake accounts distract from the only thing that’s important in the end, which is the conditions that the contract. Musk has also stated that the reason he was leaving was because Twitter removed high-ranking executives and one-third of the recruitment team, which violated Twitter’s requirement to “preserve substantial integrity of the fundamental elements in its present business model.”

Musk can’t be forced to conclude the deal in the event of a failure to fund it – as long as there’s no evidence that he was the source of the financial failure as per legal experts.

The subpoenas from Twitter were focussed on the issue they believed was the demotion of Bob Swan, an operating partner of venture investment firm Andreessen Horowitz who at first directed Musk’s efforts in negotiating deal finance. His replacement was Antonio Gracias, a long-time Musk associate, as per the lawsuit filed by Twitter.

Brian Quinn, a professor at Boston College Law School, said Twitter appears to want to learn whether “Gracias played a role in securing financing or if he was meant to hold things back.”

Swan was not able to respond to messages made through LinkedIn and Andreeesen Horowitz. Gracias did not reply to a request for comments made via the Valor Equity Partners firm.

Experts have said Twitter is keen to understand the lenders’ concerns over the amount of fake accounts appearing on the platform, as well as whether this was a problem to them as Musk has suggested.

Investors were contacted to discuss communications regarding this Twitter deal with people who are close to Musk like Steve Jurvetson, a former Tesla board member and currently director at SpaceX , the private rocket firm founded by Musk.

Jurvetson did not respond immediately to a request for comments addressed via the Future Ventures firm.

“lol lawyers associated with TWTR are distributing subpoenas people in the community around @elonmusk” said Joe Lonsdale, a co-founder of Palantir Technologies Inc, on Twitter. “I am not involved with this other than some funny comments and received the ‘YOU’RE HEREBY COMMANDED’ notification,” he wrote.

Twitter’s subpoenas are as a “giant fishing expedition that is a harrier.”

Lonsdale did not respond immediately to a comment request made by the 8VC firm.

Theodore Kittila, a Delaware corporate litigator, claimed that Twitter has been trying to figure out what Musk was talking about in private, in tweets he posted publicly. were worried about fake accounts and bots. Twitter accounts. Twitter.

“They attempt to sneak into the midst, behind Twitter,” explained Kittila. “They are looking through the emails, trying to determine the actual conversation and what prompted his decision to halt the agreement.”

Musk has issued subpoenas of his own over the last 2 days Concentrix Solutions, a data analytics company, as well as TaskUs USA, which moderates content. Musk’s subpoenas were sealed.

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