Home Technology Twitter Investor Sues Elon Musk And Platform Over Takeover Bid

Twitter Investor Sues Elon Musk And Platform Over Takeover Bid

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Twitter investor sues Elon Musk and platform over takeover bid

A Twitter investor is suing Elon Musk and the social media platform over the handling of the billionaire’s $44bn bid for the company.

The case alleges he violated California corporate laws in a number of ways.

It accuses the Tesla boss of “wrongful conduct” as his “false statements and market manipulation have created ‘chaos’ at Twitter’s headquarters in San Francisco”.

Twitter shares are around 27% lower than Mr Musk’s $54.20 offer price.

The proposed class action lawsuit was filed this week at the US District Court for the Northern District of California by investor William Heresniak, who said he was acting “on behalf of himself and all others similarly situated”.

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A class-action is a lawsuit that has been filed or is defended by an individual acting on behalf of a group of people.

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The lawsuit claimed Mr Musk benefitted financially by delaying the disclosure of his significant stake in Twitter, and his plan to become a board member of the company.

It also claimed that several tweets posted by Mr Musk, who is a regular Twitter user with more than 95m followers, were “misleading”.

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It included a post in which Mr Musk said his takeover bid for the social media firm was on hold because of his doubts over the number of fake accounts on the platform.

The tweet on 13 May “constituted an effort to manipulate the market for Twitter shares as he knew about the fake accounts,” the lawsuit said.

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