SEPOY.net
No Result
View All Result
Saturday, June 14, 2025
  • Home
  • News
  • Business
  • Health
  • Tech
  • Lifestyle
  • Economy
  • Crypto
  • Travel
  • Home
  • News
  • Business
  • Health
  • Tech
  • Lifestyle
  • Economy
  • Crypto
  • Travel
No Result
View All Result
SEPOY.NET
No Result
View All Result
Home Business

Twitter investors sue Elon Musk and Twitter for stock 'manipulation' during chaotic takeover bid

Nicholas by Nicholas
May 27, 2022
in Business
0

Twitter shareholders are suing Elon Musk and Twitter itself as they claim the billionaire manipulated the company’s stock price downward in his $44 billion (€40 billion) takeover bid for the social media platform.

READ ALSO

Wildfires are highlighting insurance-to-value issues

Aviva Canada announces interim CEO 

The investors said the Tesla CEO saved himself $156 million (€145 million) by failing to disclose that he had purchased more than 5 per cent of Twitter by March 14. They asked to be certified as a class and to be awarded an unspecified amount of punitive and compensatory damages.

They also named Twitter as a defendant, arguing the company had an obligation to investigate Musk’s conduct, though they are not seeking damages from the firm.

The investors said Musk continued to buy stock after that, and ultimately disclosed in early April that he owned 9.2 per cent of the company, according to the lawsuit, filed on Wednesday in San Francisco federal court.

“By delaying his disclosure of his stake in Twitter, Musk engaged in market manipulation and bought Twitter stock at an artificially low price,” said the investors, led by Virginia resident William Heresniak.

Neither Musk nor his lawyer immediately responded to requests for comment. Twitter declined to comment.

The investors said the recent drop in Tesla’s stock has put Musk’s ability to finance his acquisition of Twitter in “major peril” since he has pledged his shares as collateral to secure the loans he needs to buy the company.

Tesla’s shares were trading at around $713 on Thursday afternoon, down from above $1,000 (€930) in early April.

The timing of Musk’s disclosure of his stake has already triggered an investigation by the U.S. Securities and Exchange Commission (SEC), the Wall Street Journal reported earlier this month.

The SEC requires any investor who buys a stake exceeding 5 per cent in a company to disclose their holdings within 10 days of crossing the threshold.

The investors also said public criticism by Musk of the company, including a May 13 tweet stating the buyout was “temporarily on hold” until Twitter proved that spam bots accounted for less than 5 per cent of its users, amounted to an attempt to further drive the share price down.

Musk on Wednesday pledged an additional $6.25 billion in equity financing to fund his bid for Twitter, a sign he is still working to complete the deal.

Musk was sued earlier this month in Delaware Chancery Court by a Florida pension fund seeking to halt the deal on the basis that some other big Twitter shareholders were supporting the buyout, a violation of Delaware law. Heresniak’s lawsuit does not seek to stop the takeover.

Tags: BusinessElon Musksocial mediaTechnologyTwitter

Related Posts

Wildfires are highlighting insurance-to-value issues
Business

Wildfires are highlighting insurance-to-value issues

June 13, 2025
Aviva Canada announces interim CEO 
Business

Aviva Canada announces interim CEO 

June 13, 2025
Steve Masnyk to leave CAMGA, search on for next chief executive
Business

Steve Masnyk to leave CAMGA, search on for next chief executive

June 13, 2025
Israel announces extended conflict as flights cancelled, rerouted and Marine carriers on guard
Business

Israel announces extended conflict as flights cancelled, rerouted and Marine carriers on guard

June 13, 2025
California launches probe into State Farm
Business

California launches probe into State Farm

June 13, 2025
Tariff push multinationals to rebuild supply chains, creating new risks
Business

Tariff push multinationals to rebuild supply chains, creating new risks

June 12, 2025
Next Post

Small Bitcoin whales may be keeping BTC price from 'capitulation' — analysis

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

About

Sepoy.net is a perfect place for people who want daily updates on news related to business, technology, entertainment, health, cryptocurrency etc.

Contact: hello@sepoy.net

Major Categories

News

Business

Tech

Economy

 

Recent Posts

  • Ladbrokes Spielbank
  • 2 Gambling enterprises inside temple out of luxor $ Casino Universe login problem step 1 Kaution ihr Ort Chișinău, Moldawische republik
  • Better Real cash Casinos online Gambling enterprises Ybets bonuses you to Pay Real money within the You

Pages

  • About Us
  • Contact Us
  • Disclaimer
  • DMCA
  • Home
  • Privacy Policy

© 2023 Sepoy.net

No Result
View All Result
  • Home
  • Business
  • News
  • Health
  • Tech
  • Science
  • Lifestyle
  • Travel

© 2023 Sepoy.net