Elon Musk Subpoenas Ex-Twitter CEO Dorsey as Legal Fight Over Buyout Intensifies

Elon Musk had alleged that Twitter defrauded him by concealing the number of fake accounts in its regulatory filings.

(Photo Courtesy: Facebook/Elon Musk)

Tesla CEO Elon Musk has subpoenaed ex-Twitter CEO Jack Dorsey, seeking documents in an attempt to pursue his counter-suit to walk away from the $44 billion acquisition deal to buy Twitter, according to legal filings made public on Monday, 22 August.

Musk's legal team has asked Dorsey for all documents and communications regarding the merger deal as well as documents "reflecting, referring to, or relating to the impact or effect of false or spam accounts on Twitter's business and operations," as per a report by news agency Reuters.

The subpoena sought documents about Twitter's usage of mDAU, a measure of active users on the platform, as per the report.

Jack Dorsey had resigned from the position of Twitter CEO in November 2021 and left the company's board in May 2022.

Dorsey had earlier expressed support for Musk's takeover of Twitter, a company that he co-founded.

"In principle, I don't believe anyone should own or run Twitter," Dorsey had tweeted in April. "Solving for the problem of it being a company however, Elon is the singular solution I trust. I trust his mission to extend the light of consciousness," he had stated.

The Lawsuit

Elon Musk had in July backed out of his deal to buy Twitter and had alleged that the company defrauded him by concealing the number of fake accounts in its regulatory filings.

Twitter, on the other hand, had denied Musk's allegations and filed a lawsuit against the Tesla chief.

Twitter had filed a lawsuit against Musk for backing out of the agreement, asking the Delaware Court of Chancery to order Musk to go ahead with the deal, this led to Delaware Court of Chancery Chancellor Kathleen McCormick ordering a five-day trial starting 17 October to determine whether Musk can walk away from the multi-billion dollar deal.

Musk had filed a counter-suit against the social media giant on 30 July. The Tesla CEO has accused Twitter of fraud, alleging that the company misled him regarding several key aspects of the business before he agreed to a buyout agreement.

(With inputs from Reuters.)