Elon Musk’s ‘Hold’ on Twitter Deal Triggers Securities Fraud Concerns –

Elon Musk’s statement that Twitter’s purchase agreement was “temporarily suspended,” reducing the price and value of the company’s shares, which he promised to buy. Raises concerns about possible fraud in securities.

With his huge Twitter platform, Musk could destroy the stock market with a single offer. On Friday, his Twitter account, which suspended its $ 44 billion pledge to buy Twitter, was “temporarily suspended” because there may be more fake accounts and bots on Twitter than he realizes. Twitter shares fell 25%.

Musk himself decided to refuse proper diligence before it was offered to him. If he doesn’t, he can make a thorough investigation into the company. On Friday night, he said on Twitter that his “team” would investigate 100 Twitter profiles randomly selected I tried to verify that they were true and I asked other users to do the same.

But it’s time for a proper forensic examination in terms of his agreement.

“” No Temporary Suspension Scheduled Bloomberg columnist Matt Levine writes on Friday. “Elon Musk Signs A. Binding Agreement Asks Him to Buy Twitter.” The deal “does not allow Musk to leave if it is discovered that‘ spam / fake ’accounts represent more than 5% of Twitter users,” the company revealed in its quarterly messages last month, added Levin.

When you buy a company, “you shouldn’t say anything that isn’t true and it will affect the stock of the corporation you’re trying to buy,” Levin says. This is commonly called “securities fraud” or sometimes I like to call it “mild securities fraud”. Musk has a long history of stock fraud.

Current Twitter CEO Parag Agrawal worked on Friday to strengthen the boat and allay investor apprehension after Muskie tweeted. “While I expect the deal to close, we need to be prepared for all situations and always do what’s right for Twitter,” he tweeted.

Musk did not immediately comment.