The two parties traded barbs in legal documents ahead of a trial that is scheduled to start in October.
According to legal documents released by Musk's lawyers, the social media company engaged in a scheme to "mislead investors" by providing false numbers to the SEC. According to Musk, the platform has at least double the number of bot the company claims.
The billionaire CEO of Musk's companies is looking for an excuse to back out of his agreement to buy the social network.
The dispute over whether Musk has to follow through with the deal will be decided in a Delaware court.
The drama started when Musk disclosed his stake in the micro-blogging site. He changed his mind about joining the board and offered to buy the company or sell his holdings.
After initially opposing the deal, the company agreed to sell to Musk for around $54.20 a share. With the market tanking and the share price going down, Musk decided to badmouth the company in order to get out of the deal.
Here is a list of the latest developments based on new and previously confidential filings to the court.
Musk accused the company of including false statements in its SEC disclosures. Musk's corporate law firm Skadden-Arps said that the social media company is exaggerating the number of false and fake accounts on its platform.
For a long time, Musk has been complaining about scam artists on the micro-blogging site.
The goal of taking over the company was one of the reasons Musk wrote about it in the press release.
Musk and his team have spent months trying to invent a spam disclosure problem and have found nothing.
In their countersuit, Musk's attorneys stated that mDAU is not as closely tied to revenue as the public believes. They claim that the key metric of mDAU is not explained to shareholders or to Musk in an accurate way.
Musk did not bring up concerns about mDAU as a reason to end the deal.
Musk's allegations are a new litigating position. How it defines the mDAU metric and its significance to the company were disclosed in the SEC filing.
In his countersuit, Musk said that he relied on the SEC filings to learn more about the company.
He doesn't say that he's been friends with Jack Dorsey for a long time. CNBC reported in January 2020 that the two executives had a discussion about how to improve the service.
Musk has a longstanding business relationship with Silver Lake, which is run by Egon Durban. According to reports, Silver Lake was a big backer of SolarCity, where Musk served as chair, and was one of the firms advising Musk when he said he was considering takingTesla private for $420 a share.
The SEC disclosures are accurate and the company misrepresented nothing, according to the company. Musk's claims are not supported by any evidence.
Musk sought an urgent deal, undertook no due diligence, and offered a self-proclaimed "seller friendly" merger agreement that did not contain representations about false or fake accounts.
The complaint doesn't mention that Musk is considering starting a new social media platform.
The attorneys for the company alleged that Musk tried to use the confidential data that was provided to him to make a false claim.
According to the lawyers, Musk claims that the merger agreement was reached by stonewalling his requests.
The counterclaim says that Musk's team relied on accounts visible on the Firehose using the University of Indiana Botometer tool to back up their accusations.
The use of the Botometer tool was questioned by the social media site. The lawyers wrote that the tool is different from the one that was used by Musk and that he is likely to be a bot.
The legal team has subpoenaed associates of Musk.
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