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Twitter sues Elon Musk to hold him to $44 billion deal

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  • Twitter lawsuit accuses Elon Musk of contract breach
  • Twitter also accuses Musk of “secretly” accumulating shares in company between January and March without properly disclosing substantial purchases to regulators.
  • Musk did not immediately respond to a request for comment.

WILMINGTON: Twitter Inc has sued Elon Musk for violating his $44 billion deal to buy the social media platform and asked a Delaware court to order the world’s richest person to complete the merger at the agreed $54.20 per Twitter share.

“Musk apparently believes that he – unlike every other party subject to Delaware contract law – is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away,” said the complaint.

The lawsuit sets in motion what promises to be one of the biggest legal showdowns in Wall Street history, involving one of the business world’s most colorful entrepreneurs in a case that will turn on staid contract language.

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On Friday, Musk said he was terminating the deal because Twitter violated the agreement by failing to respond to requests for information regarding fake or spam accounts on the platform, which is fundamental to its business performance.

Musk, who is the chief executive officer of electric vehicle maker Tesla Inc, did not immediately respond to a request for comment.

The lawsuit accused Musk of “a long list” of violations of the merger agreement that “have cast a pall over Twitter and its business.” It said for the first time that employee attrition has been “on the upswing” since the deal was announced.

Twitter also accused Musk of “secretly” accumulating shares in the company between January and March without properly disclosing his substantial purchases to regulators, and said he “instead kept amassing Twitter stock with the market none the wiser.”

Shares of the social media platform closed at $34.06 on Tuesday, up 4.3%, but sharply below the levels above $50 where it traded when the deal was accepted by Twitter’s board in late April. The stock added another 1% after the bell.

Musk said he was terminating the merger because of the lack of information about spam accounts and inaccurate representations that he said amounted to a “material adverse event.” He also said executive departures amounted to a failure to conduct business in the ordinary course – although Twitter said it removed that language from the merger contract during negotiations.

Twitter also said it did not share more information with Musk regarding spam accounts because it feared he would build a competing platform after abandoning the acquisition.

Twitter called the reasons cited by Musk a “pretext” that lacked merit and said his decision to walk away had more to do with a decline in the stock market, particularly for tech stocks.

Tesla’s stock, the main source of Musk’s fortune, has lost around 30% of its value since the deal was announced and closed on Tuesday at $699.21.

In a separate filing, Twitter asked the court to schedule a four-day trial in mid-September.

In a memo to Twitter staff on Tuesday, Twitter Chief Executive Parag Agrawal sought to reassure employees about the future.

“We will prove our position in court and we believe we will prevail,” he wrote in the note, which was seen by Reuters.

Legal experts have said that from the information that is public Twitter would appear to have the upper hand.

“In its complaint Twitter is taking a strong position that Musk had a case of buyer’s remorse – and that, and not bots, is the reason for his decision to walk away from the deal,” said Brian Quinn, a professor at Boston College Law School. “The facts Twitter presents here make an extremely strong argument in favour of Twitter getting this deal closed.”

Musk is among Twitter’s most-followed accounts and the lawsuit included images of several of his tweets, including a poop emoji, that the company said violated the merger’s “non-disparagement” clause.

Musk tweeted the emoji on May 16 in response to a pair of tweets by Agrawal, explaining the company’s efforts to fight spam accounts.

It also included an image of a text message Musk sent Agrawal after Twitter sought on June 28 reassurances about Musk’s financing for the deal.

“Your lawyers are using these conversations to cause trouble,” Musk texted to Agrawal. “That needs to stop.”

Twitter noted that after Musk said he was terminating the deal, he sent tweets on Monday that Twitter said suggested his requests about spam were part of a plan to force spam data into the public sphere.

“For Musk, it would seem, Twitter, the interests of its stockholders, the transaction Musk agreed to, and the court process to enforce it all constitute an elaborate joke,” the lawsuit said.

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China and Pakistan Sign Memorandum of Understanding to Launch AI-Powered Agricultural Equipment

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Through Chinese expertise, the arrangement, which was made possible by the Special Investment Facilitation Council (SIFC), intends to increase Pakistan’s agricultural output.

The Punjab government and China’s “AI Force Tech” company have inked a memorandum of understanding (MoU) to introduce advanced agricultural machinery during Chief Minister Maryam Nawaz’s visit to China.

Through the use of advanced robotic technology, the MoU seeks to transform Pakistan’s agricultural industry, guarantee economic growth, and boost farmers’ wealth with China’s assistance.

Through the partnership, Pakistan would also have the chance to absorb knowledge about China’s sophisticated farming methods.

In the meantime, plans have been revealed by the Federal Minister of Planning to send 1,000 agricultural experts to China to study contemporary farming methods.

A Chinese business and the Punjab government previously inked an agreement to introduce cutting-edge cancer treatment technologies to Punjab.

Maryam Nawaz signed a Memorandum of Understanding (MoU) with Hygea Medical Technologies while she was in China in order to introduce cutting-edge cancer treatment equipment and techniques to Punjab.

This equipment will make it feasible to treat cancer without the need for chemotherapy or surgery.

Following a meeting with Hygea Medical Technologies President Dr. Luo Fuliang, Maryam Nawaz said the organization has promised expert assistance for the establishment of the Nawaz Sharif Cancer Hospital.

She went on to say that the hospital will work with China to treat cancer patients utilizing the newest equipment and techniques following the agreement.

Maryam Nawaz and a high-level delegation are present. From December 8 to December 15, the chief minister will go to Beijing, Shanghai, Shenzhen, and Guangzhou.

CM Maryam Nawaz is expected to attend a number of conferences, events, and meetings with the goal of enhancing bilateral relations and looking into potential joint ventures in the areas of infrastructure development, technology, agriculture, and governance.

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ChatGPT by OpenAI experiences a significant outage!

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Users were unable to use ChatGPT, the well-known AI chatbot, due to a major outage that occurred today.

The problem was initially noticed by users on outage-tracking websites and social media channels. The company that created ChatGPT, OpenAI, has acknowledged the outage and is attempting to fix it.

There is currently an outage affecting us. We have located the problem and are in the process of implementing a solution.

“We’re currently experiencing an outage,” the business wrote in a statement on X, the platform that was originally known as Twitter. We have located the problem and are in the process of implementing a solution. We apologise and will keep you informed.

ChatGPT Outage

Users are unable to access the chatbot and are presented with error messages suggesting that the service is offline; however, the precise cause of the outage is still unknown. Many users have been affected by this disruption, including researchers, students, enterprises, and individuals who depend on ChatGPT for a variety of purposes.

OpenAI has not yet given a projected timeline for the complete restoration of the service. It is recommended that users keep up with the most recent information via OpenAI’s official channels.

Earlier, late Friday night, thousands of users from all around the world, including Pakistan, experienced interruptions on Meta platforms like Facebook, Instagram, and Threads.

Nearly 1,000 customers in Pakistan reported problems with Meta services at approximately 11 p.m., according to Downdetector.com, a real-time platform outage tracker. In the meantime, 2,259 complaints have been filed against WhatsApp since 10:52 p.m. In the same period, Instagram, which is also owned by Meta, received more than 1,200 reports of outages.

On the competing platform X, several Facebook and Instagram users reported running into issues with messages like “something went wrong.” In a succinct Facebook comment, Meta acknowledged the problem and said, “We’re working on getting this fixed as soon as we can.”

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How to avoid falling victim to scammers on WhatsApp groups

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Smartphone users occasionally find themselves in a difficult situation when they are part of multiple WhatsApp groups.

To his annoyance, a user is typically added to dozens of WhatsApp groups for friends, family, and the office. This is because his phone rings every other second from the constant barrage of forwarded messages.

But these days, scammers are busy in WhatsApp groups, coming up with novel ways to con people.

After joining a WhatsApp group, a man lost INR 16 lakh to scammers, according to a startling disclosure.

Reports from the Indian media state that the event took place in Mangaluru and that the victim was deceived into joining a WhatsApp group by an unidentified individual.

The victim clicked on a dubious link and was duped into downloading a malicious program after being seduced with promises of large rewards in share market investing.

Hoping for large rewards, the victim transferred INR 16.9 lakh to the scammer’s bank account.

The victim discovered he had been duped, however, when he attempted to withdraw the money and was unable.

A clear reminder of the dangers of believing unidentified links and promises made online is provided by this instance.

Advice for Guarding Against These Scams:

Be cautious of unknown links and apps.
Avoid unverified investments with promises of high returns.
Research before downloading apps.
Enable two-factor authentication for added security.

Report suspicious activities to the platform or local police.

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