Elon Musk is being sued by Twitter investors for his handling of the much-hyped proposal to purchase the social media behemoth for $44 billion. According to Reuters, the lawsuit accuses the SpaceX billionaire of failing to report his purchase of over 5% of Twitter by March 14, 2022. They said that by keeping this a secret, he was able to save $156 million on the sale.
Musk continued to acquire stock after that, according to the investors, until publicly declaring in early April that he held 9.2 percent of the firm. Musk is also accused of disseminating “misleading” information on Twitter, where he has over 95 million followers. Musk had previously stated that he was putting the transaction on hold until he received more information concerning spam bots and false accounts on the network.
The investors, on the other side, claim that Musk is using underhanded tactics to “discredit” Facebook and snare the transaction at a low price. “By delaying his disclosure of his Twitter ownership, Musk participated in market manipulation and purchased Twitter stock at an artificially low price,” a group of investors led by Virginia resident William Heresniak said.
The lawsuit was filed while Musk “continues to disparage the company he wants to buy for $44 billion in an effort to renegotiate the purchase price,” according to Frank Bottini, one of the lawyers representing the Twitter investors, who told the BBC that Musk “continues to disparage the company he wants to buy for $44 billion in an effort to renegotiate the purchase price.” “The case we filed in San Francisco attempts to hold Musk accountable for his illegal behavior,” Bottini continued. The investors also sued Twitter, claiming that the company owed them an investigation into Musk’s actions. They are not, however, demanding any monetary compensation from the social media firm.
He is accused of breaking California corporation regulations in a variety of ways, according to the lawsuit. It accuses Musk of “wrongful behavior,” claiming that his “false claims and market manipulation have generated ‘chaos’ in Twitter’s San Francisco headquarters.” Mr Musk’s $54.20 bid price for Twitter shares is roughly 27% cheaper. Investor William Heresniak filed the proposed class action complaint this week in the US District Court for the Northern District of California, claiming to be acting “on behalf of himself and all others similarly situated.” A class-action lawsuit is one that has been filed or is being defended on behalf of a group of individuals.
