Elon Musk has been sued by Twitter investors for alleged violation of California corporate laws. The business mogul has been accused of mishandling his $44 billion Twitter bid and for wrongful conduct. The investors claim that Musk’s false statements and market manipulation have created chaos at the platform’s headquarters in San Francisco.
Since the announcement of his bid, Twitter’s shares have slumped 27 percent lower than his $54.20 offer price.
The investors claimed that the Tesla Boss’s tweets on the platform are detrimental to the company and misleading to his 95 million followers and the public. Among the tweets in question include Musk’s announcement to put the bid on hold citing fake accounts and bots.
The investors allege that Musk knew about the bots but his tweets constituted efforts to manipulate the market for Twitter shares. The case further says he doubled down in his allegations four days later by stating that the “Twitter deal cannot go forward.”
One of the lawyers in the case told BBC that the investors had decided to sue as Musk was continuously disparaging the company he wants to buy for $44bn in an effort to renegotiate the purchase price”.
The lawsuit further says that the Tesla boss benefitted financially by delaying the disclosure of his actual stake on Twitter as well as his plans to join the company’s board.