Dorsey, who stepped down as Twitter’s chief executive in November and left the board in May, has been subpoenaed for documents and communications related to Musk’s April deal to buy the company and spam accounts on the platform. pursuant to a copy of the subpoena. Dorsey, who is CEO of payments processor Block Inc, did not immediately respond to a request for comment. Block was founded by Dorsey and changed its name last year from Square Inc( SQ.N ). Sign up now for FREE unlimited access to Reuters.com Register Musk, the world’s richest man because of his stake in Tesla Inc, said on Twitter in July that he was terminating a deal to buy the company for $54.20 a share because he claimed Twitter had breached the contract. Twitter and Musk are suing each other, with Twitter asking a Delaware District Court judge to order Musk to close the deal. A five-day trial is scheduled to begin on October 17. The subpoena sought documents and communications related to Twitter’s use of mDAU, a measure of active users on its platform. Musk claimed the company cheated him by hiding the number of fake accounts in its regulatory filings, which Musk said he used to value the company. Twitter denied Musk’s spam claims. Twitter CEO Jack Dorsey addresses students during a town hall at the Indian Institute of Technology (IIT) in New Delhi, India November 12, 2018. REUTERS/Anushree Fadnavis/ Musk also wanted documents and communications about alternative active user measures the company has considered and information about the use of mDAU in executive compensation and annual goals. Twitter declined to comment. Dorsey had backed Musk’s takeover bid for Twitter, as the two men agreed on the need for more transparency about its algorithm and to allow users more control over the content they see. Dorsey also tweeted that he thinks Twitter is being held back by its advertising model, and Musk said Twitter should rely more on subscriptions and services like money transfers between users. Musk and Dorsey had discussions in March about Musk joining Twitter’s board before Musk revealed he had acquired a 9.1% stake in Twitter. Musk accepted a seat on the board but before his term began, he changed course and offered to buy the company. Shares of Twitter were down 2.5% at $42.89 late Monday. Sign up now for FREE unlimited access to Reuters.com Register Report by Tom Hals in Wilmington, Delaware. additional reporting by Katie Paul in San Francisco. Sheila Dang in Dallas. Edited by David Gregorio Our Standards: The Thomson Reuters Trust Principles. Tom Hales Thomson Reuters Award-winning reporter covering US courts and law from the COVID-19 pandemic to high-profile criminal trials and Wall Street’s biggest failures with over two decades of experience in international financial news in Asia and Europe.
