The current owners of the company complain that the acquisition process is too chaotic. This greatly affected the share price and made it unstable.

Details of the allegation

According to the source, in the proposed class action filed Wednesday, May 25, Twitter shareholders allege that Musk violated California’s corporate law in several ways at once while manipulating the market.

• In one of the charges, they claim Musk benefited financially by delaying the disclosure of his Twitter post and temporarily hiding his plan to become a board member of the social network in early April.
• Musk also shared Twitter shares at a time when Musk gained insider information about the company based on private conversations he had with board members and executives, including his longtime friend, former CEO Jack Dorsey, and Twitter’s board member Silver Lake CEO Egon Durban. he bought. firm had previously invested in SolarCity before acquiring Tesla.
• The next allegation is that Musk violated California law by raising doubts as to whether he could complete the deal after signing a purchase agreement.

• Shareholders’ complaint adds that all disclosures about bots are only aimed at lowering the price or breaking the deal.

Musk continued to make statements, tweets, and act in a way that casts doubt on the deal, significantly reducing his Twitter posts, creating leverage that Musk hopes to use to cancel the purchase or revise the purchase price by up to 25 percent. will reduce the redemption amount by $11 billion,
– spoken in collective action.

The lawsuit has already been filed in California Northern District Court, with shareholders seeking a jury trial. Both the company and Musk declined to comment.