Twitter shareholders sue Elon Musk for sinking the company’s shares

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twitter shareholders sue elon musk for sinking the company's shares
twitter shareholders sue elon musk for sinking the company's shares

The acquisition of Twitter by Elon Musk continues to be talked about and has proven to be a more eventful process than originally anticipated. We previously reported that billionaire Elon Musk had put the operation on hold until the whole thing about fake accounts and bots that undeniably abound on the platform is cleared up . However, it seems that this movement of pieces could end up costing Musk money; And we’re not just saying that because Tesla’s stock price has taken a nosedive since then, but because of what we just found out today. 

Going into details, Twitter shareholders filed a lawsuit against Elon Musk in the federal district court of San Francisco on May 25, 2022 . This alleging that the CEO of Tesla and SpaceX has actively manipulated the company’s actions for personal gain. 

Elon Musk is sued amid Twitter purchase

The plaintiffs contend that since the purchase agreement was entered into, Mr. Musk has: 

“Made statements, tweeted, and engaged in conduct designed to cast doubt on the deal and substantially reduce Twitter’s actions to create leverage that Musk hoped to use to back out of the purchase or renegotiate the purchase price.” 

The truth of the matter is that, at the time of this writing, Twitter stock has a market value of $40.24. The latter at least explains the significant skepticism about whether the deal will close at $54.20 as agreed at the time. 

Chart via ABC Economy

The plaintiffs call Mr. Elon Musk’s recent actions illegal and “in violation of the California Corporations Code, and contrary to the contractual terms that he agreed to in the deal.” However, nothing seems to indicate that the CEO of SpaceX and Tesla intends to back down or take advantage of this situation, but it remains a possibility.

At the moment Twitter has not made a public statement about the lawsuit. For his part, Musk looks calm on Twitter sharing memes and advances from his company SpaceX; but surely we will have more information about it in the coming days. 

Via | TheVerge