SAN FRANCISCO- A Twitter investor plans to take Elon Musk and the social media platform’s executives to court over their current handling of the Musk-Twitter acquisition.
The case accuses Musk of violating California’s corporate laws via “wrongful contact” and “false statements.” The investor believes Musk committed market manipulation, negatively affecting Twitter’s share price, which are 27% lower than Musk’s bidding price.
The class-action lawsuit was filed earlier this week at the District Court of Northern California by company investor William Heresniak. Heresniak claimed he was acting “on behalf of himself and all others similarly situated”.
The suit alleges that Musk benefitted financially by his stalling of his disclosing his stake in Twitter, as well as his plans of becoming a company board member. Alongside this the suit also claims that many of Musk’s tweets are misleading, including his tweet in regards to stalling his company takeover two weeks ago.
Heresniak claims that the tweet “constituted an effort to manipulate the market for Twitter shares as he knew about the fake accounts.”
Frank Bottini, one of the lawyers representing the investors, told the BBC that Musk “continues to disparage the company he wants to buy for $44bn in an effort to renegotiate the purchase price. The complaint we filed in San Francisco seeks to hold Musk liable for his unlawful conduct.
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