Musk… stop… tweeting

By Scoop
May 30, 2022 · less than 3 min read

Twitter shareholders are suing the Tesla CEO for tanking the company’s stock, claiming he intentionally engaged in behaviors that would create doubt. 

The plan all E-long? 

Last Wednesday, a case was filed against Elon Musk in the San Francisco federal district court. Twitter shareholders claim the billionaire actively manipulated the company’s stock for personal gain. Naughty Elon.  

The complaint focuses on his conduct since signing a purchase agreement with Twitter’s board on April 25. He has since made statements, sent tweets, and engaged in behavior designed to create doubt. Twitter’s stock was consequently down, and well… Was it really just some accident?

The social company’s shareholders don’t think so. For their money, Elon’s end goal was either backing out of the purchase agreement, or re-negotiating the buyout price. His current takeover bid stands at $44 billion, but according to investors, Musk saved himself a couple of cents. Well $156 million, to be exact. 

What’s the damage?  

The court case proposed is a class action brought forward by a small group of shareholders seeking damages. If rewarded, the payment would be distributed among anyone who holds stock in the company.  

Musk’s behavior is somewhat unusual, but there’s no clear attempt from him to cancel or renegotiate the deal – yet. We’ve spent enough time reading about Elon to know that his next move is sure to come from the left field. So for now, all bets are off.  

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