Elon Musk is being sued by Twitter investors who feel cheated

Deepak Gupta May 27, 2022
Updated 2022/05/27 at 9:30 AM

Elon Musk’s purchase of Twitter, once taken for granted, appears to have taken an unexpected turn. After much criticism of the social network, the business is put on hold with the claim that it would only move forward if the concrete numbers of how many fake accounts there are on the social network were shared.

Now, this will have been just a move to lower the price of the purchase value, but investors are not satisfied with Elon Musk’s maneuvers and that’s why they went ahead with a lawsuit against the tycoon.

Elon Musk is being accused by a group of Twitter investors for alleged manipulation of the company's share price, for his own benefit, as soon as the purchase of the company was taken for granted by both parties, for the value of 44 billion euros. dollars.

The lawsuit, filed Wednesday in Northern California federal district court, argues that Musk intentionally lowered the company's stock to secure a better deal, that is, to get a discount at the time of purchase.

The fair market value of Twitter's securities was adversely affected by Musk's misrepresentation and misconduct

The lawsuit cites Musk's decision to resign from due diligence as a condition of the acquisition and its subsequent suspicious claim that Twitter had misrepresented the number of bots on the platform.

At the time, Musk was well aware that Twitter had a number of "fake accounts" and accounts controlled by "bots" and had in fact settled a lawsuit based on the fake accounts for millions of dollars. Musk had already tweeted about this issue on Twitter several times in the past, before making his offer to acquire Twitter with full knowledge of the bots.

Elon Musk Manipulates the Market to Build His Wealth

The suit alleges that Musk was likely trying to secure a discount by casting doubt on his commitment and belittling the company. Since Musk's initial commitment to buy the company was announced, tech stocks - including Tesla - have plummeted.

With all of Musk's comments over the past few weeks, Twitter's stock has also dropped significantly, a phenomenon the lawsuit claims is "highly unusual" given the company's agreed purchase price. The truth is that Elon Musk is fully aware of the power of his publications on the social network, as has been seen several times with other topics, namely with the value of virtual currencies.

The suit further alleges that Musk deliberately delayed filling out a disclosure form when his stake in the company exceeded 5%, allowing him to continue to buy shares at a discount. After the form was filled out and Musk's purchases became public knowledge, Twitter's stock rose by nearly a third.

Musk's disregard for securities laws demonstrates how anyone can flaunt the law and the tax code to build their wealth at the expense of other Americans.

Despite the many tweets of the tycoon left on the social network in recent hours, apparently, there are none that refer to this process.

Share this Article
Leave a comment

Leave a Reply

Your email address will not be published.