From the recent updates, it has been found that Elon musk at present is facing another lawsuit over his planned Twitter acquisition. Reuters has reported that investors have sued the Tesla CEO for allegedly manipulating stock prices ahead of his $44 billion takeover bid. In the earlier suit, it was that Musk supposedly saved $156 million by failing to disclose that he is having around a 5 percent stake in Twitter by March 14th, violating SEC rules. The investors of Twitter have said that Musk only disclosed his investments in early April and revealed that he owned a 9.2 percent slice of the social network.
The post-announcement statements of Elon Musk amounted to manipulation, the investors said. All the investors are particularly concerned about the claim that the deal was “on hold” until Twitter could prove that bots weren’t a major problem and this all represented less than 5 percent of accounts.
Probing further, the plaintiffs in the case are hoping for the class-action status and they are also asking if there are any unspecified damages if they’re successful. At present, Twitter has declined to comment on this and Musk hadn’t responded to Reuters‘ requests for comment. So, the exact things are not known yet.
However, it has been known that Elon Musk’s hoped-for purchase has already sparked a flurry of legal action. In addition to this previous lawsuit from April, a Florida pension fund sued Musk for purportedly violating a Delaware law and this is something that would bar the merger until 2025. Meanwhile, the SEC is there investigating Musk’s disclosure timing. Hence, this is all that you need to know about why Elon Musk has been sued by the investors of Twitter. To have more information, connect.