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>legally Musk is already past this point -- he signed a contract promising to buy Twitter without doing any real investigation. He agreed to buy based on twitt
by rasz 5y ago
>legally Musk is already past this point -- he signed a contract promising to buy Twitter without doing any real investigation.
He agreed to buy based on twitter public filings. Those might turn out to be a lie. Ask Mike Lynch how selling a company based on SEC filings filled with lies ends up.
https://www.cio.com/article/304397/the-hp-autonomy-lawsuit-timeline-of-an-ma-disaster.html https://www.cio.com/article/304397/the-hp-autonomy-lawsuit-t...
https://www.computerweekly.com/news/252512620/British-court-rules-in-HPs-favour-in-Mike-Lynch-fraud-case https://www.computerweekly.com/news/252512620/British-court-...
- helsinkiandrew 5y agoMike Lynch was involved in a "multibillion dollar accounting cover-up". Musk can walk away if Twitter’s securities filings are wrong but only if that would lead to a “Material Adverse Effect” on the company: > Delaware courts have almost never found an MAE. An MAE has to be something that would “substantially threaten the overall earnings potential of the target in a durationally-significant manner,” the courts have said; there is a rule of thumb that an MAE requires a 40% decrease in long-term profitability. If it turned out that 6% or 20% or 50% of Twitter accounts are bots, that will be embarrassing and might even reduce Twitter’s future advertising revenue, but will it be an MAE? No. https://www.bloomberg.com/opinion/articles/2022-05-13/elon-musk-trolls-twitter https://www.bloomberg.com/opinion/articles/2022-05-13/elon-m...
- rasz 5y agoWhat is the main product twitter sells? How would lying about the quality and quantity of said product not be significant?