Start United States USA — Financial Twitter shareholders sue Elon Musk and Twitter over chaotic deal

Twitter shareholders sue Elon Musk and Twitter over chaotic deal

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Since Musk’s acquisition bid, Twitter’s share price has dropped more than 12%, and Tesla’s is down about 28% as part of a broad sell-off in tech stocks.
Twitter shareholders are suing Elon Musk, and Twitter itself, over their handling of a chaotic acquisition process that is still underway, and that has contributed to volatile price swings in the company’s stock price. The Tesla and SpaceX CEO revealed a significant stake in Twitter on April 4, and 10 days later proposed a buyout for $44 billion, or $54.20 per share. He has both sold and pledged a chunk of his Tesla holdings as collateral for loans in order to finance the deal. Since Musk’s acquisition bid, Twitter’s share price has dropped more than 12%, and Tesla’s is down about 28% as part of a broad sell-off in tech stocks. Tesla shares were off more than 40% at the end of trading Wednesday since Musk first revealed his stake. In a proposed class-action lawsuit filed on Wednesday, Twitter shareholders allege that Musk violated California corporate laws on several fronts, and in doing so engaged in market manipulation.

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