Twitter faces Texas investigation over fake accounts|Yuri Samoilov|CC BY 2.0
Texas Attorney General Ken Paxton said Monday that his office opened an investigation on Twitter over the number of bots or automatic fake accounts.
Attorney General Paxton’s office will investigate whether the micro-blogging platform was misleading users on the number of bots and violating the Texas Deceptive Trade Practices Act, a state law to protect consumers against false, misleading and deceptive practices.
The Texas investigation comes the same day as Tesla CEO Elon Musk threatened to drop his deal to buy Twitter.
Elon Musk is reconsidering his Twitter deal
Elon Musk, via his attorneys, sent a letter to Twitter threatening to back out of the $44 billion agreement due to the growing concerns around fake and bot accounts.
Musk’s lawyers pressed on requesting the details of Twitter’s fake accounts, saying he is entitled to access the data as a part of the merger agreement.
According to an SEC filing on April 25, the Twitter deal includes a $1 billion termination fee, making it difficult for Musk to walk away.
Plunge in stocks
Elon Musk’s warning comes after a plunge in several technology stocks, including Tesla Inc. With Twitter shares plunging 1.5% at $39.57 Monday, investors speculate Musk will either convince Twitter for a lower deal price or walk away.
