A new complaint on behalf of Twitter shareholders was filed against Elon Musk last Wednesday. She accuses the billionaire of actively manipulating the company’s stock price for personal gain.
The complaint exposes Musk’s conduct since signing the purchase agreement with Twitter’s board on April 25. This aims in particular the recent suspension of the buyout of the platform by the billionaire. He justified his decision by invoking the lack of transparency regarding the amount of fake accounts on Twitter.
The document states as follows:Musk has made statements, posted tweets and engaged in behavior aimed at casting doubt on the deal and significantly lowering Twitter’s stock. He did so in order to create leverage which he hoped to use to back out of the deal or renegotiate the racha price.t”.
Rachat de Twiiter : “Musk’s conduct is illegal“
The complaint finally concludes: “As detailed herein, Musk’s conduct was and continues to be illegalin violation of the California Corporations Code, and contrary to the contractual terms it accepted in the agreement“. This legal action seeks damageswhich would be distributed among all shareholders of the company.
Although Elon Musk’s behavior is unusual, Tesla CEO hasn’t clearly tried to cancel or renegotiate the deal. On the other hand, the elements put forward by the complainants are confirmed by the unusual behavior of the Twitter action. Indeed, it is currently trading at a price significantly lower than its initial value, before the takeover announcement.
Thereby, a Twitter share is now worth less than $40. At the time of the announcement of the takeover deal by the world’s richest man, this one was worth over $54. The complaint also seeks an injunction from the court, which could potentially force Musk to buy Twitter at the agreed price. Elon Musk, who wants to double the profits of the platform, has not yet reacted to this affair.
Source : theverge
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