Twitter investors are going up the wall. Since Elon Musk decided to get involved, the shares have fallen a lot, well below the 54.2 dollars that Musk offered in the proposal to buy him (27% less than that value, in fact).
Now there is a lawsuit from multiple investors alleging that Musk violated California corporate laws in various ways.
The lawsuit accuses Musk of “unlawful conduct,” with the text:
[…] his false statements and market manipulation have created chaos at Twitter headquarters in San Francisco.
The lawsuit was filed by investor William Heresniak on his behalf and on behalf of others who are in a similar situation. William claims that Musk benefited (financially speaking) by delaying disclosure of his involvement on Twitter and that he also delayed disclosure of his plan to become a member of the company’s board of directors.
He also claimed that several tweets posted by Musk were misleading, such as the one he posted saying that his takeover bid for the social media company was on hold due to his concerns about the number of fake accounts on the platform. That kind of statement manipulates the Twitter stock market. He also said that Musk “doubled down” on him four days later, declaring on Twitter that the deal “cannot go forward.”
Analysts believe that Elon Musk could be looking for ways to reduce his takeover offer or abandon the deal, as he continues to show concern on the network, mainly due to the number of fake accounts, or bots, on Twitter.
On the other hand, according to the law in the US state of Delaware, where Twitter is located, the deal should not be allowed to close before 2025, so it seems that things will go a long way.
