Elon Musk has notified Twitter that he intends to terminate his settlement to purchase the social media group for $44bn, accusing it of revealing “false and deceptive” details about the variety of faux and spam accounts.

Twitter’s chair, Bret Taylor, responded swiftly, saying the board was “dedicated to closing the transaction on the value and phrases agreed upon with Mr Musk” and would pursue authorized motion to implement the settlement. “We’re assured we’ll prevail within the Delaware Court docket of Chancery,” he added.

In a submitting on Friday, legal professionals for the billionaire Tesla chief government claimed Twitter was “in materials breach of a number of provisions” of the sale settlement, and “seem[ed] to have made false and deceptive representations”. The variety of spam and pretend accounts on the platform was “wildly increased” than the 5 per cent estimated by Twitter, in line with preliminary evaluation by Musk’s advisers, the submitting acknowledged.

Individually, in line with the submitting, Musk is contemplating whether or not Twitter’s “declining enterprise prospects” and monetary outlook violate the settlement.

The submitting additionally accused Twitter of failing to adjust to its obligation to “conduct its enterprise within the strange course” after chief government Parag Agrawal imposed a recruitment freeze, fired two senior members of employees and this week introduced that the corporate was shedding a 3rd of its expertise acquisition workforce.

Twitter’s shares fell eight per cent in after-hours buying and selling.

Musk had beforehand stated Twitter’s failure to supply details about faux accounts would make it problematic to safe financing from banks that agreed to lend him the money to finish the transaction. He had repeatedly indicated that he was contemplating strolling away from the deal agreed in April.

Underneath the phrases of the settlement, Musk can terminate the deal by paying $1bn if he fails to safe financing for the transaction. Nevertheless, US courts have traditionally sided with sellers in authorized battles when consumers attempt to terminate offers to discourage acquirers from strolling away on spurious grounds.

Since Musk agreed to purchase Twitter in April, the market capitalisations of tech corporations have fallen sharply, making the valuation agreed costly in contrast with rivals. The share value of Snap, considered one of Twitter’s closest rivals, has dropped greater than 65 per cent this yr.

Musk secured financing from a number of outstanding traders for the buyout, together with Oracle co-founder Larry Ellison and Sequoia Capital, the enterprise capital group.

The Tesla chief government despatched shockwaves by means of Wall Road when he introduced his bid to take over Twitter in what he described as an try and convey again free speech to the platform.

In a latest interview with the Monetary Occasions, he stated he would reverse the “morally improper” ban on former president Donald Trump, which was imposed after the lethal January 6 2021 assault on the US Capitol.