SEC Investigates Twitter Over Spam Accounts – Court Orders Social Media Giant To Provide Additional Data To Elon Musk – Featured Bitcoin News

SEC Investigates Twitter Over Spam Accounts – Court Orders Social Media Giant To Provide Additional Data To Elon Musk – Featured Bitcoin News

Twitter Inc. was ordered to provide Elon Musk with additional information regarding spam and bot accounts. The social media giant has sued a Tesla executive for backing out of its $44 billion bid to buy the social media platform. The US Securities and Exchange Commission (SEC) also questioned Twitter about the number of spam accounts.

Court orders Twitter to provide additional data to Elon Musk

Chancellor Kathaleen St. J. McCormick, a judge in the Delaware court, signed an order on Thursday ordering Twitter Inc. (NYSE: TWTR) is seeking to provide additional data to Tesla and Spacex CEO Elon Musk. Plaintiff Twitter sued defendants Musk and his two companies, X Holdings I and X Holdings II, for termination a $44 billion deal to buy the social media platform. Musk has counterclaim Twitter.

Judge McCormick stated in her order:

The requests for the data of the accused are absolutely abroad.

She added: “Read literally, the defendants’ document request would require the plaintiffs to produce trillions upon trillions of data points reflecting all the data Twitter might store for each of the approximately 200 million accounts included in its mDAU count every day for three years.”

The social media company defines monetizable daily active users (mDAUs) as “Twitter users who signed up and accessed Twitter on any given day through Twitter.com or Twitter apps that may serve ads.”

The order further reads:

The plaintiff was ordered to provide a subset of what the defendants requested: 9,000 accounts reviewed in connection with the plaintiff’s Q4 2021 audit, which the parties refer to as a ‘historical review’.

“The prosecutor claimed that, with considerable effort, these documents could be produced in less than two weeks, and the prosecutor will try to meet that deadline. In addition, the prosecutor must submit documents sufficient to show how those 9,000 accounts were selected for review,” the order details.

Meanwhile, the US Securities and Exchange Commission (SEC) is investigating Twitter over its way of identifying spam accounts, according to a new regulatory filing published on Wednesday.

In a June 15 letter, the SEC asked Twitter CEO Parag Agrawal to provide some information about how the company calculates the number of bot accounts. “We note your estimate that the average number of fraudulent or spam accounts during fiscal 2021 continues to represent less than 5% of mDAUs,” the SEC wrote, adding:

To the extent material, please disclose the methodology used to calculate these figures and the underlying judgments and assumptions used by management.

Twitter replied to the SEC’s request with a standard description of the methodology on June 22. The social media giant informed the securities regulator that it had “appropriately” disclosed the methodology it uses, noting that it randomly selects thousands of accounts for people to review quarterly.

On July 27, the SEC sent another letter to Twitter saying, “We have completed our review of your filings. We remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, regardless of staff reviews, comments, actions or inactions.”

Earlier this month, Musk sold nearly 8 million shares of Tesla. The head of Tesla he said that it’s important to avoid a rush to sell Tesla shares in case Twitter forces the buyout deal to close and some equity partners don’t come through.

Do you think the court will force Elon Musk to implement the deal to buy Twitter? Let us know in the comments section below.

SEC Investigates Twitter Over Spam Accounts – Court Orders Social Media Giant To Provide Additional Data To Elon Musk – Featured Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.




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