The pension fund argues that a Delaware law means Musk’s deal to buy Twitter cannot take effect for three years.
The Orlando Police Pension Fund has filed a lawsuit against social media site Twitter and billionaire Tesla CEO Elon Musk arguing that his bid to buy the platform cannot take effect until 2025. Attorneys for the pension fund, which is a Twitter shareholder, argue that the delay is required by a Delaware law that necessitates a three-year wait to close the deal because Musk is an “interested shareholder.” Their complaint argues that Musk entered into agreements with other shareholders, including Twitter founder Jack Dorsey and the investment bank Morgan Stanley, to support his bid for the platform. Lawyers for the pension fund filed the complaint with the Delaware Chancery court on Thursday. The complaint is based on a state statute passed in the 1980s during a period of corporate takeovers and designed to protect the rights of shareholders. The pension fund notes that Musk owned around 9.6 percent of Twitter when company’s board approved his takeover bid and argues that he had an “agreement, arrangement or understanding” with other shareholders.
