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Musk Seeks Jack Dorsey Documents in Fight Over Twitter Settlement

Musk Seeks Jack Dorsey Documents in Fight Over Twitter Settlement
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WILMINGTON, Del., Aug 22 (Reuters) – Billionaire businessman Elon Musk is seeking documents from Twitter Inc.(TWTR.N) Co-founder Jack Dorsey, as CEO of Tesla and SpaceX, is continuing his legal fight to abandon his $44 billion deal for the social media company, according to a court filing.

Dorsey, who stepped down as Twitter chief executive in November and left the board in May, was asked for documents and communications about Musk’s April deal to buy the company and about spam accounts on the platform, according to a copy of the report. citation.

Dorsey, who is CEO of payment processing company Block Inc, did not immediately respond to a request for comment. Block was co-founded by Dorsey and changed its name last year from Square Inc.(SQ.N).

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Musk, the world’s richest person due to his stake in Tesla Inc, told Twitter in July that he was ending the deal to buy the company for $54.20 a share because he alleged that Twitter had breached the deal’s contract. Since then, Twitter and Musk have sued each other, with Twitter asking a Delaware Chancery Court judge to order Musk to close the deal. A five-day trial is scheduled to begin on October 1. 17

The subpoena sought documents and communications about Twitter’s use of mDAU, a measure of active users on its platform. Musk has alleged that the company defrauded him by hiding the number of fake accounts in its regulatory documents, which Musk said he used to value the company.

Twitter has denied Musk’s spam accusations.

Twitter CEO Jack Dorsey addresses students during a town hall at the Indian Institute of Technology (IIT) in New Delhi, India November 12, 2018. REUTERS/Anushree Fadnavis/

Musk also wanted documents and communications about alternative measures of active users that the company has considered and information about the use of mDAU in executive pay and annual goals.

Twitter declined to comment.

Dorsey supported Musk’s takeover offer for Twitter as the two men agreed on the need for greater transparency for its algorithm and allowing users more control over the content they see.

Dorsey also tweeted that he thinks the ad model is holding Twitter back, and Musk said Twitter should rely more on subscription fees and services like money transfers between users.

Musk and Dorsey held talks in March about adding Musk to Twitter’s board before Musk disclosed that he had taken a 9.1% stake in Twitter. Musk accepted a board seat, but before his term began, he changed course and offered to buy the company.

Twitter shares were down 2.5% at $42.89 in late-night trading.

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Reporting from Tom Hals in Wilmington, Delaware; additional reporting by Katie Paul in San Francisco; Sheila Dang in Dallas; Edited by David Gregory

Our standards: The Thomson Reuters Trust Principles.

tom halls

Thomson Reuters

Award-winning reporter covering the US courts and law from the COVID-19 pandemic to high-profile criminal trials and Wall Street’s biggest busts with over two decades of international financial news experience in Asia and Europe.

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