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by Sebb767 1435 days ago
And the "not related to the deal" part is the problem - even if he wins this claim, this does not necessarily constitute MAE and therefore does not get him out of the deal. Due diligence includes verifying those numbers or at least checking where they come from, especially if they are as important to the deal as they now appear to be.
1 comments
ergocoder 1435 days ago
It may or may not help.

But it would certainly be a major bargaining chip for Elon.

No execs want to go to jail for fraud. These execs are worth 50m+. Losing money is insignificant. Going to jail is a very huge deal

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Sebb767 1435 days ago
It would be quite funny if he got Twitter into SEC trouble, just to become it's owner a bit later; especially given their history.

Anyway, this is just my unprofessional opinion, but for him to be able to prove intentional deceit is already going to be quite hard. Conditional on him managing that, he'd need to use a number he - by his own statements - hardly believed to clear the incredibly high bar of MAE in Delaware. I think it's very unlikely that he will be able to exit the deal this way.

To address your edit: I don't see how he'd manage to prove fraud without already providing enough evidence to send execs to jail. Also, the SEC would be the one prosecuting people anyway - he has nothing to bargain with. Lastly, this does not change the fact that the bot number, no matter how made up, will very likely not be sufficient to get out of this deal.

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ergocoder 1433 days ago
One possible scenario:

He took over twitter. Fire the execs. Opening up all emails.

You can bet at least one person out of 6000 employees disagree with how twitter counts bot number.

Pick that email, point out that execs discarded a concern raised by employee.

Change the calculation of bot number to be higher. Report to SEC in public earning. Allude that the previous number was just plainly wrong.

Sue the execs for fraud... since SEC accepts the new number and approach which is materially different from the old number.

To be honest, just opening up all emails is already bad enough for execs.

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