One lawsuit alleges that SpaceX manipulated the stock price of the millionaire’s social media platform and tried to secure a better deal.
Twitter investors sued both Elon Musk and Twitter in a California court on Wednesday, arguing that SpaceX and Tesla had slashed the social media company before starting the billionaire purchase and then publicly insulted Twitter for reconsidering the terms of the purchase. .
The class-action suite was brought by investor William Herseniak “For myself and for everyone else in the same situation.” That would include small investors like Harseniak, as well as financial giants like the Vanguard Group and BlackRock, who own a combined 15% of the social media platform.
The lawsuit alleges that Musk bought a stake in Twitter in March, that he planned to buy the company and that he wanted to join the platform’s board of directors, delaying disclosure of the fact that Herseniak’s lawyers argued. “Twitter could be the reason for the stock increase.”
Once Mask began his 44 billion purchase, the lawsuit alleges that the billionaire spread misleading information about the deal. “Temporarily on hold” Twitter to lower stock prices and negotiate a better deal. Musk, a well-known Twitter user, claims that the proliferation of fake and spam accounts on Twitter makes the company less valuable, but the lawsuit alleges that Musk knew all about these accounts in 2021 due to the settlement of a fraud case. “Twitter increases its user base and growth rate.”
Twitter shares fell 19% on May 13 after Mask tweeted, “Spam / fake accounts actually support accounts that represent less than 5% of users. Pending Details Temporarily Holds Twitter Agreement.”
“Musk then started issuing false and insulting tweets about Twitter in an attempt to further reduce its stock price.” The lawsuit continues. “Musk’s misconduct has not only hurt Twitter’s shareholders significantly, which has reduced Twitter’s stock by about 25%, but it has also hurt Twitter’s employees significantly.” It continued, citing media reports from Twitter executives that the mask was planning a cutback amid rumors of their future.
The lawsuit was settled out of court, with Mask announcing last week that he would do so “Vote Republicans” In a bid “His behavior makes the media even more excited.”
Bill Gates pays millions to derail Elon Musk’s plan – Media
Harseniak is seeking his legal fees “The maximum amount of punitive damages allowed by law,” Which has been stated in the case “Exceeds the sum or value of $ 5,000,000.”
In addition to placing him in the crosshairs of angry investors, Musk’s takeover bid has angered censorship advocates, who have taken issue with his stated goal of lifting Twitter’s speech restrictions. Musk, who describes himself as one “Free speech” It has been denounced by liberal NGOs and threatened to boycott advertisers funded by billionaire financier George Soros, and – reportedly – Bill Gates, advocate for greater control over the dissemination of information on social media.
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