Twitter investors sue Elon Musk and the company over a ‘chaotic’ deal to sell the social network. In their opinion, the statements and tweets of the entrepreneur led to fluctuations in the share price.
Twitter doesn’t object to Elon Musk’s proposal for a trial to end the deal but is concerned he’ll try to delay.
Twitter shareholders have filed a lawsuit over the “chaotic” conduct of a deal to sell the social network to Elon Musk. They believe that Musk violated California corporate law and manipulated the market.
According to investors, the entrepreneur bought Twitter shares, knowing the data that was hidden from the board of directors and top managers. He also violated state laws by showing doubts about the completion of the deal. Furthermore, checking the number of fake accounts was part of his plan to get better terms or break the deal.
As a result, Musk’s statements and tweets caused the share price to fluctuate. According to CNBC, since Musk’s offer, Twitter’s share price has fallen more than 12%, and Tesla’s has fallen 28% during a sell-off in tech stocks.
Musk agreed with Twitter on buying the company for $44 billion at the end of April 2022. The deal was expected to be closed by the end of the year. In May, Musk announced he was suspending the Twitter deal as he awaited the results of a check on the number of fake accounts in the social network. Later the entrepreneur said that he could buy the company for less than the initial amount.
Twitter Inc. would agree to start an Oct. 17 trial over Musk’s bid to walk away from his $44 billion acquisition deal, but first the company wants a commitment for a five-day trial.
