“The lawsuit filed late Wednesday claims the billionaire Tesla CEO has sought to drive down Twitter’s stock price because he wants to walk away from the deal or negotiate a substantially lower purchase price.”

Twitter shareholders sue Musk, say he 'deflated' stock price

Twitter shareholders have filed a lawsuit against billionaire Elon Musk, accusing him of unlawfully sowing doubt about his bid to buy Twitter

Twitter shareholders have filed a lawsuit accusing Elon Musk of engaged in “unlawful conduct” aimed at sowing doubt about his bid to buy the social media company.

The lawsuit filed late Wednesday in the U.S. District Court for the Northern District of California claims the billionaire Tesla CEO has sought to drive down Twitter’s stock price because he wants to walk away from the deal or negotiate a substantially lower purchase price.

San Francisco-based Twitter is also named as a defendant in the lawsuit, which seeks class action status as well as compensation for damages.

A representative for Musk did not immediately respond to a message for comment on Thursday. Twitter declined to comment.

Musk last month offered to buy Twitter for $44 billion, but later said the deal can’t go forward until the company provides information about how many accounts on the platform are spam or bots.


The lawsuit notes, however, that Musk waived due diligence for his “take it or leave it” offer to buy Twitter. That means he waived his right to look at the company’s non-public finances.

In addition, the problem of bots and fake accounts on Twitter is nothing new. The company paid $809.5 million last year to settle claims it was overstating its growth rate and monthly user figures. Twitter has also disclosed its bot estimates to the Securities and Exchange Commission for years, while also cautioning that its estimate might be too low.

To fund some of the acquisition, Musk has been selling Tesla stock and shares in the electric carmaker have lost nearly a third of their value since the deal was announced on April 25.

In response to the plunging value of Tesla’s shares, the Twitter shareholders' lawsuit claims Musk has been denigrating Twitter, violating both the non-disparagement and non-disclosure clauses of his contract with the company.

"In doing so, Musk hoped to drive down Twitter’s stock price and then use that as a pretext to attempt to re-negotiate the buyout,” according to the lawsuit.

Twitter's shares closed Thursday at $39.54, 27% below Musk's $54.20 offer price.

Before announcing his bid to buy Twitter, Musk disclosed in early April that he had bought a 9% stake in the company. But the lawsuit says Musk did not disclose the stake within the timeframe required by the Securities and Exchange Commission.


And the lawsuit says his eventual disclosure of the stake to the SEC was “false and misleading” because he used a form meant for “passive investors” — which Musk at the time was not, because he had been offered a position on Twitter's board and was interested in buying the company.

Musk benefited by more than $156 million from his failure to disclose his increased stake on time, since Twitter's stock price could have been higher had investors known Musk was increasing his holdings, the lawsuit claims.

“By delaying his disclosure of his stake in Twitter, Musk engaged in market manipulation and bought Twitter stock at an artificially low price,” the lawsuit says.


 https://abcnews.go.com/Bu .. price-85005386

lmaooooo

he's so screwed in this deal.

Even in the best-case scenario for him, he still loses.

In the most-likely scenario, he's forced to buy twitter and either change it so much that everybody leaves, or keep it the same lol.




Let this be a lesson to us, if you can manipulate a person's ego, it doesn't matter how much money or power they have. That's all it too to make the world's richest man put roughly 1/5 of his net worth on the line

Saw this one coming. Honestly though the price he originally agreed to buy it at was ridiculous…While none of this litigation will actually impact his life in the short term, I do wonder, what the impact will be on his ultimate source of wealth: TSLA stock price…he’s a walking litigation magnet and that will be a hindrance to them being a leader in ESG and really corporate innovation.

Interesting.

Jail his fu*k a*s

ChrisPartlowFro said Saw this one coming. Honestly though the price he originally agreed to buy it at was ridiculous…While none of this litigation will actually impact his life in the short term, I do wonder, what the impact will be on his ultimate source of wealth: TSLA stock price…he’s a walking litigation magnet and that will be a hindrance to them being a leader in ESG and really corporate innovation. Interesting.

He was stunting for his republican twitter followers

and it may cost him a billie and also more damages

or the twitter sale maybe forced through, meaning they could sell off his stock and force him to buy twitter

ProfessionalDon said He was stunting for his republican twitter followers

Oh was he

ProfessionalDon said He was stunting for his republican twitter followers and it may cost him a billie and also more damages or the twitter sale maybe forced through, meaning they could sell off his stock and force him to buy twitter

Imagine spending a billy to own the libs

ChrisPartlowFro said Saw this one coming. Honestly though the price he originally agreed to buy it at was ridiculous…While none of this litigation will actually impact his life in the short term, I do wonder, what the impact will be on his ultimate source of wealth: TSLA stock price…he’s a walking litigation magnet and that will be a hindrance to them being a leader in ESG and really corporate innovation. Interesting.

Twitter lawyers must have gotten gigantic a*s eyeballs the minute he spit his offer out and followed it with, "take it or leave it!"

Thread quiet as sh*t.

The Elon defenders and "free-speech defenders" are usually active as hell telling us how he's gonna get Twitter to knock the price down.

Musk talks too much

yea this one is 100% on Musk. When keeping it real goes wrong I guess. His ego and Tesla's stock price raising for zero reason made him think he was God.

Now reality is hitting him in the face and he's learning he's not.

MisterHawkins said Jail his fu*k a*s

Over fu*king Twitter?

IITHUNDABR3ADII said Over fu*king Twitter?

Over that sh*t he did with bitcoin last year and this Twitter sh*t. He’s been manipulating markets with his dumb a*s tweets I hope the SEC cuffs his a*s I’m tired of his fu*k a*s

Wasn't dude already under SEC investigation before this too? I think he knows the walls are caving in which is why he's pulling the Trump stunt of me vs the "establishment" to be a hero to some before he goes down (and hopefully gets pardoned by a Republican down the line).

Tony Stark would NEVER

Con man…

view image

GrezyNclean said yea this one is 100% on Musk. When keeping it real goes wrong I guess. His ego and Tesla's stock price raising for zero reason made him think he was God. Now reality is hitting him in the face and he's learning he's not.

It was pure manipulation. Tesla stock didn't go up for no reason. Ppl that tried to short it boosted it and when the whole market was falling tesla stayed up by buying bogus call options. Billions of dollars. Real easy. They bought so many calls that expired that week that market makers had to have the shares on hand to cover it.

The prices would rise and they would sell before expiration. Every week. Lol tesla options are a lot of money to play for retail. Those are big dogs buying and selling. His brother and Nancy Pelosi are known to be in the bunch...

Everything that is happening is supposed to. I'm not taking any of this show for face value. All of a sudden he's going full red hat... Nah. He's biting a bullet like Zuckerberg had to. Media made division.

This guy their champion, this one the other side's champion getting persecuted for their beliefs... free speech and stopping misinformation lol it's like a TV movie plot...

The money isn't real. He could have 300 trillion, billion, million, whatever. He never touches money. Ppl might think like oh no, he's taking a loss or haha, he's getting what he deserves but in reality nothing is happening to the guy.

If any of this was real they wouldn't have let tesla do it in the first place. We can physically see them doing it on sites that show option activity like barchart.com ppl have been calling it out this whole time but most ppl aren't into the market like that.

I just let it play out and try to eat off the bs