The lawsuit was filed Wednesday night in federal district court in San Francisco, alleging that the Tesla CEO had actively manipulated the company’s stock for personal gain.
Tesla and SpaceX CEOs announced a significant partnership on Twitter on April 4 and offered to buy it for দিন 44 billion 10 days later. Since Musk’s acquisition bid, Twitter’s share price has fallen more than 12%, and Tesla’s share price has fallen nearly 28% as part of broader sales in tech stocks. Shares of Tesla were up more than 40% at the end of trading on Wednesday as Musk first released his shares.
The complaint focuses on Musk’s behavior since he signed the purchase agreement with Twitter’s board on April 25, especially his recent statement that the agreement “cannot proceed” without further information about the automated account on the platform.
After signing the agreement, the lawsuit alleges that “Musk was involved in making statements, sending tweets and creating suspicions about the agreement, and lowered Twitter’s stock enough to expect Musk to back off.” Discuss purchase or purchase price. “
The lawsuit is a proposed classification system brought in by a small group of shareholders seeking compensation that will be distributed to anyone who holds the company’s stock.
The lawsuit further claims that Musk violated California law by sharing his doubts about whether he would complete the contract after signing the purchase agreement.
Earlier this month, Musk said he was “holding” the Twitter acquisition to learn more about “unverified” activity on the platform, including information on fake or automated accounts.
“Mask is engaged in behavior designed to make statements, send tweets and create suspicion about the deal, and to significantly reduce the stock of Twitter to create the leverage that Musk hoped to withdraw from the purchase or use for negotiation.” The buyout price is about 25%, which, if completed, would reduce the buyout consideration by 11 billion, ”the complaint said.
Under California law, state corporations must be excluded from voting on board members’ proposals if they engage in or engage in any of the relevant misconduct.
Initially, the lawsuit alleges that Musk acted illegally to reduce financial risk for himself because Twitter’s stock price plummeted after an attempt to buy Twitter.
Twitter has not yet commented on the matter. Neither Elon Musk nor his representatives have responded to these recent claims.