The Twitter-Musk situation has been the buzz of the town ever since Elon Musk proposed to buy the microblogging platform. Following the acceptance of the offer, valued at $44 billion, we have seen several turns and twists in this sage. Now, the latest to join the growing list is a lawsuit against Musk filed by a Twitter shareholder. Here are the details you need to know.
A Twitter shareholder (on behalf of other shareholders too) has filed a lawsuit against Musk in federal district court for Northern California accusing him of market manipulation at the time of buying Twitter. Musk allegedly bought Twitter at an “artificially low” stock price to benefit himself by delaying revealing his share in Twitter.
“Musk proceeded to make statements, send tweets, and engage in conduct designed to create doubt about the deal and drive Twitter’s stock down substantially in order to create leverage that Musk hoped to use to either back out of the purchase or re-negotiate the buyout price by as much as 25% which, if accomplished, would result in an $11 billion reduction in the Buyout consideration,” reads the lawsuit.
