A new day, a new controversy involving Elon Musk. The businessman has been sued by Twitter shareholders, who accuse him of sinking the share price of the social network. The lawsuit highlights several situations involving the CEO of Tesla and SpaceX, both before and after announcing the purchase of the company, which allegedly broke the law.
According to the whistleblowers, Elon Musk made about $156 million by failing to report on time that he had acquired 5% of Twitter shares. “By delaying the disclosure of his involvement on Twitter, Musk manipulated the market and bought shares at an artificially low price, in violation of the California Corporation Code,” the document says.
But the magnifying glass is also on the statements that Elon Musk has made since the $44 billion deal was announced. The shareholders consider that the comments where the tycoon assured that the acquisition was “temporarily paused” due to doubts in the numbers of Twitter bots were also detrimental to the value of the company’s shares .
“Musk proceeded to make statements, tweets, and engage in conduct designed to cast doubt on the deal and substantially depress Twitter’s stock price, to create an advantage that Musk hoped to use to withdraw from the purchase or renegotiate its price.” , indicates the demand.
Returning to the most recent lawsuit against the magnate of South African origin, the document mentions that his promoters intend to receive an unspecified amount for punitive and compensatory damages. Furthermore, if the request for an injunction is successful, Elon Musk would be forced to buy Twitter at the agreed price of $54.20 per share.
