In an effort to withdraw from the social media platform’s acquisition, Elon Musk has subpoenaed his friend and former CEO Jack Dorsey. Eva Marie Uzcategui/Bloomberg via Getty Images and Liesa Johannssen-Koppitz/Bloomberg remove caption
switch to caption Eva Marie Uzcategui/Bloomberg via Getty Images and Liesa Johannssen-Koppitz/Bloomberg
In an effort to withdraw from the social media platform’s acquisition, Elon Musk has subpoenaed his friend and former CEO Jack Dorsey.
Eva Marie Uzcategui/Bloomberg via Getty Images and Liesa Johannssen-Koppitz/Bloomberg Elon Musk has served his friend and former CEO of Twitter, Jack Dorsey, with a subpoena as part of his legal battle to renounce his acquisition of the social media business.
In an effort to force Musk to carry out an agreement to pay $44 billion for Twitter, the company is suing Musk in Delaware Chancery Court. Both sides have submitted several subpoena requests, requesting documents and correspondence related to the purchase from banks, investment firms, CEOs, and prominent Silicon Valley players.
Musk’s attorneys are requesting papers and communications from Dorsey regarding how Twitter detects, labels, and counts phony accounts as well as how it utilizes daily active users as a key statistic in its financial statements, according to legal filings made public on Monday.
Musk claims that Twitter withheld information about the quantity of spam and bots among its daily active users. He asserts that by include fictitious figures in financial reports submitted to the Securities and Exchange Commission, the social media company attempted to “mislead investors.”
While Musk’s team has “spent months trying to fabricate a spam disclosure problem,” Twitter claims that its SEC filings are accurate. In opposition to the legal defenses put forth by the richest man in the world, the corporation asserts that Musk’s efforts to finance the transaction fizzled out.
Dorsey and Musk, the CEOs of Tesla and SpaceX, have been close friends for a long time. Both people are fascinated by cryptocurrencies.
The buyout and Musk’s decision to take the firm private were backed by Dorsey, who left his position as CEO of Twitter in November 2021.
Elon is the only Twitter answer in which I have faith, he wrote in a tweet.
I don’t think anyone should own or run Twitter, in theory. On a protocol level, it aims to be a public good, not a business. Elon is the only one I trust to address the issue of it being a company, though. I have faith in his effort to spread consciousness.
Jack April 26, 2022 (@jack) The legal team for Twitter has inquired about Musk’s correspondence with a number of influential Silicon Valley figures in an effort to understand how his views on the deal evolved.
Marc Andreessen, Joe Lonsdale, David Sacks, and Steve Jurvetson are businessmen and venture capitalists whose documents and messages Twitter is looking for. Some of them have contributed to Musk’s purchase’s funding.
In the meantime, Musk’s attorneys have issued many subpoenas for data regarding fictitious Twitter accounts.
The judge accepted Musk’s requests to subpoena emails from Bruce Falck and Kayvon Beykpour, who were both were both dismissed by CEO Parag Agrawal in May. Beykpour and Falck were formerly in charge of revenue products and consumer products, respectively.
On October 17, a five-day trial is slated to begin.