Shareholders of social media company Elon Musk’s latest Twitter are seeking class action status in a lawsuit filed against the billionaire Tesla founder, accusing him of unjust enrichment, misrepresentations, and stock manipulation to lower the price or lower $44. Billions of deals he got.
Musk initially funded the acquisition, in part, by promising billions of dollars in Tesla stock for a bank loan. This became a problem as Tesla’s shares fell within 30 days of the announcement, according to a lawsuit in the US District Court in Northern California (read here). As Tesla shares fell, “Musk began making false statements and manipulating the stock market on Twitter,” including declaring that the deal was “pending.”
Wednesday’s lawsuit also reflects Musk’s failure to disclose his 9.2% stake in San Francisco-based Twitter and the unusual turn of events when asked what the SEC is investigating. So Musk first agreed to join Twitter’s board as an ally, then reversed that decision and made a hostile offer and threatened hostility if Twitter didn’t agree.
Musk and Twitter signed a rally to $54.20 in late April. It needs to be approved by Twitter shareholders at a private meeting, but no date has been announced. Musk has reportedly agreed to forego due diligence or delve deeper into the company’s business, which is the norm for major acquisitions. A few weeks later, it sent spam or bot reports to the service, saying it didn’t think Twitter was recording them and that the deal was “temporarily suspended” until we had more information. The lawsuit lowered Twitter’s stock price “to create leverage that Musk hopes to use to abandon the purchase or renegotiate the purchase price.”
Musk has a “unique, multimillion-dollar problem.”
The main shareholder of the stock is William Heresniak from Virginia. Twitter names the defendants, along with Musk.
Musk also filed with the SEC on Wednesday, removing Tesla from the equation, promising to repurchase an additional $33.5 billion in equity for an additional $6.25 billion, eliminating Tesla’s marginal credits that were part of the original laundering. .
Source: Deadline
Lloyd Grunewald is an author at “The Fashion Vibes”. He is a talented writer who focuses on bringing the latest entertainment-related news to his readers. With a deep understanding of the entertainment industry and a passion for writing, Lloyd delivers engaging articles that keep his readers informed and entertained.
