By Willard Hughes, The Chicago Times
June 8, 2022
AUSTIN, TX – Texas Attorney General to launch investigation into Twitter for possible deceptive trade practices as Elon Musk attempts to purchase the social media company.
Texas Attorney General Ken Paxton announced that his office is investigating Twitter for potential false reporting of bots on its social media platform. Elon Musk has threatened to walk away from his $44 billion bid for Twitter because the company has refused to disclose how many bots and fake accounts are on the platform.
Twitter’s stock price has dropped 40% since Musk’s announced his takeover bid in April. Shareholders have filed suit against Musk as shares have continued to decline. Twitter is currently trading in the $40 range.
Paxton’s investigation will seek to reveal if Twitter violated Texas’ Deceptive Trade Practices Act. Paxton points out that Twitter disclosed in SEC documents that fewer than 5% of all accounts are bots, however Paxton suspects that 20% or more could be bots or fake accounts. Twitter currently has 229 million accounts. Paxton has given Twitter until June 27 to disclose how they calculate and manage user data.
“The difference could dramatically affect the cost to Texas consumers and businesses who transact with Twitter” Paxton said in a statement.