Twitter Inc. has been ordered to provide additional data related to spam and bot accounts to Elon Musk. The social media giant has sued the Tesla CEO to end a $44 billion offer to buy the social media platform. The US Securities and Exchange Commission (SEC) has also questioned the number of spam accounts on Twitter.
Court orders Twitter to give additional data to Elon Musk
Chancellor Kathleen St. Jay McCormick of the Delaware Court of Chancery signed an order Thursday requiring Twitter Inc. (NYSE:TWTR) to provide additional data to Tesla and SpaceX CEO Elon Musk. Plaintiff Twitter has sued defendant Musk and two of his companies, X Holdings I and X Holdings II, to terminate a $44 billion deal to buy the social media platform. Musk hit back on Twitter.
Judge McCormick said in his order:
Respondent’s data requests are entirely overseas.
She continued: “Read frankly, the defendant’s document request would require the plaintiffs to produce trillions upon trillions of data points, reflecting all the data that Twitter could possibly access every three years from the roughly 200 million accounts included in its mDAU count.” can be stored for each of the .
The social media company defines monetizable daily active users (mDAUs) as “Twitter users who have logged into and accessed Twitter through Twitter.com or the Twitter application on any given day that are capable of serving advertisements. “
The command further reads:
The plaintiffs have been ordered to submit a subset of what the defendants requested: 9,000 accounts reviewed in connection with the plaintiffs’ Q4 2021 audit, which the parties refer to as a ‘historic snapshot’.
“The plaintiff represented that, with considerable effort, these documents could be produced within two weeks, and the plaintiff would endeavor to meet that time limit. In addition, the plaintiff would be required to produce sufficient documents to show that How those 9,000 accounts were selected for review,” the order details.
Meanwhile, the US Securities and Exchange Commission (SEC) has investigated Twitter over its way of identifying spam accounts, according to a new regulatory filing made public on Wednesday.
In a letter dated June 15, the SEC asked Twitter CEO Parag Agarwal to provide some information on how the company counts the number of bot accounts. “We note your estimate that the average number of false or spam accounts represented less than 5% of MDAUs during fiscal 2021,” the SEC wrote.
To the extent material, please disclose the methodology used in computing these figures and the underlying decisions and assumptions made by management.
Twitter responded to the SEC investigation on June 22 with a standard description of the methodology. The social media giant has informed the securities regulator that it has “substantially” disclosed the method it uses, noting that it randomly selects thousands of accounts for review. people every quarter.
The SEC sent another letter to Twitter on July 27 that said: “We have completed a review of your filing. We remind you that there is no review, comment, action or absence of action by the Company and its management staff.” Regardless, are responsible for the accuracy and adequacy of their disclosure.
Earlier this month, Musk sold nearly 8 million shares of Tesla. The Tesla boss said that it is important to avoid an emergency sale of Tesla stock in the event that the Twitter buyout forces the deal to be closed and some equity partners don’t.
Do you think the court will force Elon Musk to go through with the deal to buy Twitter? Let us know in the comments section below.
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