Elon Musk has filed a shareholder lawsuit on Twitter accusing the CEO of Tesla of criticizing the company for agreeing to buy and sow suspicion to reduce Twitter’s value.
The group’s proposed lawsuit, filed Wednesday in U.S. District Court in Northern California, argues that Musk sought to reduce Twitter’s share price because he wanted to get stuck in the deal or negotiate a lower price. of purchase.
The lawsuit, which also named Twitter, claims Musk’s attacks violated both non-compliance and disclosure clauses of his contract with the company.
Musk went on to release statements, tweets and behaviors designed to question the deal and to completely eliminate Twitter shares to provide the leverage Musk hopes to use to withdraw from the deal or re-negotiate. . The purchase price is approximately 25%, which, if implemented, would lead to an $ 11 billion reduction in the purchase price, ”the lawsuit read.
“Muskie’s conduct was unlawful, violated the California Corporate Code and contrary to the terms of the contract he accepted in the settlement,” the lawsuit added.
Musk agreed last month to buy the social media company for $ 44 billion, but has since repeatedly sued the public on Twitter. In particular, he complained about the number of bots or spam accounts that Twitter said was less than 5% of accounts. Musk thought at a tech conference earlier this month that the percentage of fake accounts could reach 95%.
He also announced that he would suspend the purchase, although he insisted he was still “loyal” to the deal. He later said that a low purchase price was not out of the question.
Since the offer to buy Musk – and the rumble – has affected Twitter’s stock it has fallen by more than 12% Tesla has fallen by nearly 28%.
Twitter shares closed at $ 39.54 on Thursday, 27% less than Musk’s $ 54.20 offer to buy the company.
The lawsuit also accuses Musk of buying stock in insider trading before speaking with the company’s board members and failing to meet the legal deadline to notify the Securities and Exchange Commission that he bought a 5% stake in the company. . The SEC sent a letter to Musk requesting an explanation for the delay.
Musk could not comment and did not comment on the lawsuit.
Source: Huffpost
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