Printed on Mon Jul 04 2022 3:32:05 AM
Twitter Investors sue Musk over takeover bids
Elon Musk is confronting one more claim over his arranged Twitter acquisition.
Reuters reports investors have sued the Tesla CEO for allegedly manipulating stock prices ahead of his $44 billion takeover bid.
As in an earlier suit, Musk supposedly saved $156 million by failing to disclose that he'd bought more than a 5% stake in Twitter by March 14th, violating SEC rules.
The investors said Musk only disclosed his investments in early April when he revealed that he owned a 9.2% slice of the social network.
Musk's post-announcement statements also amounted to manipulation, the investors said. They were particularly concerned about his claim that the deal was "on hold" until Twitter could prove that bots weren't a major problem and represented less than 5% of accounts.
The plaintiffs in the case are hoping for class-action status, and ask for unspecified damages if they're successful. Twitter has declined comment, and Musk hadn't responded to Reuters' requests for comment.
Musk's hoped-for purchase has already sparked a flurry of legal action. In addition to the previously mentioned lawsuit from April, a Florida pension fund sued Musk for purportedly violating a Delaware law that would bar the merger until 2025.
The SEC, meanwhile, is investigating Musk's disclosure timing. There's no certainty any of these actions will succeed, but they still pose serious challenges to Musk's ambitions.
Read More: Elon Musk: Twitter deal ‘temporarily on hold’