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twitter Shareholders are suing Elon Musk and Twitter itself for handling the chaotic acquisition process that is still underway. This contributes to the fluctuating price fluctuations of the company’s stock price.
Tesla and SpaceX CEOs unveiled a significant stake in Twitter on April 4, proposing an acquisition of $ 44 billion, or $ 54.20 per share, 10 days later. He sold and pledged a portion of Tesla’s holdings as collateral for the loan to finance the transaction.
Since the bid to buy Musk, Twitter’s share price has fallen by more than 12%, and Tesla’s share price has fallen by about 28% as part of a significant tech stock sellout. Tesla’s stock has fallen by more than 40% at the end of Wednesday’s trading since Musk first revealed his stock.
In a class action proposal filed Wednesday, Twitter shareholders allege that Musk violated California. Companies Act Engaged in market manipulation in several respects, and in doing so.
As one of the potential breaches, Musk argued that he was financially profitable by delaying the necessary disclosure of Twitter’s investment and temporarily concealing plans to become a social network officer in early April. I am.
Musk also gained a share on Twitter, but he talks about the company based on private conversations with board members and former CEO Jack Dorsey, who is a longtime friend of Musk, and Egon Durban, co-CEO of Silver Lake. He states he knew the insider information. , A Twitter board member who had previously invested in SolarCity before Tesla acquired it.
Dorsey officially resigned from Twitter’s board on Wednesday.Shareholders Voted not to revive Durban..
The proposed proceeding also alleges that Mask broke California law by questioning whether to complete the transaction after signing a contract to purchase it.
Earlier this month he masked Twitter acquisition is “pending” To learn more about malicious activity on the platform, including information about fake and automated accounts.
Shareholder complaints added that his complaints about “bots” are part of a plan to negotiate better prices or kill deals.
“Mask wants to make a statement, send a tweet, question the deal, engage in actions designed to significantly lower Twitter’s stock, and use Musk to cancel or renegotiate the purchase. We have created the leverage we were thinking of. Buyout prices will rise by up to 25%, and if this is achieved, buyout consideration will be reduced by $ 11 billion. “
According to California law, companies in the state must exclude board members from voting for proposals if they are involved in any misconduct related to or related to the proposal.
Twitter declined to comment. Mask did not return a request for comment.
Proceedings, Heresniakv. Musket al has been filed in the Northern California District Court and shareholders are seeking a jury trial. Shareholder complaints may be further amended.