According to a new Securities and Exchange Commission filing, Elon Musk is putting a stop to his $44 billion deal to purchase Twitter.
“Mr. Musk has sought the data and information necessary to ‘make an independent assessment of the prevalence of fake or spam accounts on Twitter’s platform’ and did not receive it,” the filing noted.
Fake accounts have been a major issue in Musk’s process to buy the social media platform. The CEO of Tesla had already warned that he wouldn’t go through with the deal because of the problems with bots and spam accounts.
The filing by Musk’s lawyer accuses Twitter of “material breach of multiple provisions of that agreement.” It added that the company seems to have made “false and misleading representations” when going into the deal.
On Friday, Bret Taylor, Twitter Chairman, commented that the board’s side of the deal is still in place.
On April 25, Musk came to an agreement to buy Twitter for $54.20 per share.
On May 13, he stated that his desire to purchase Twitter was “temporarily on hold” because of the spam accounts.
5% of users are utilizing fake accounts, Twitter has said although they noted that number may not be exactly accurate.
If Musk doesn’t go through with the agreement, he may be out of $1 billion because a breakup expense.
Subsequent to after hours trading on Friday, Twitter stock went down 6%.