Elon Musk was sued by a Twitter investor who says the world’s richest person’s on-again-off-again purchase of the social media platform and his public attacks on the company were designed to manipulate its stock price. Giuseppe Pampena says that when Musk agreed last week to go ahead with his purchase of Twitter, at the originally agreed-upon price, he “essentially acknowledged that he had been bluffing all along” about backing out of the deal.
The flip-flops and Musk‘s accusations about Twitter sunk its stock price, hurting investors while all the while improving Musk’s bargaining position, according to the securities class-action complaint filed Monday in federal court in San Francisco.
Musk offered to buy Twitter in April for $54.20 (roughly Rs. 4,500) per share, or $44 billion (roughly Rs. 3.6 lakh crore), but then announced he was pulling out of the deal three weeks later.
Then, “Musk proceeded to make statements, send tweets, and engage in conduct designed to create doubt about the deal and drive Twitter’s stock down substantially in order to create leverage that Musk hoped to use to either back out of the purchase or re-negotiate the buyout price by as much as 25 percent which, if accomplished, would result in an $11 billion (roughly Rs. 91,000 crore) reduction in the buyout consideration,” according to the suit. “Musk’s conduct was fraudulent and illegal.”
Musk has previously been sued at various points along the way in the Twitter buyout saga.
Representatives of Quinn Emanuel Urquhart & Sullivan LLP, the law firm that represents Musk in several legal matters including the Twitter buyout, didn’t immediately respond outside regular business hours to a request for comment.
© 2022 Bloomberg L.P.
Affiliate links may be automatically generated – see our ethics statement for details.
For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who’sThat360 on Instagram and YouTube.
Visa, FTX Exchange Team Up to Bring Crypto Debit Cards in Over 40 Nations
Read The Full Article Here