A Twitter shareholder has sued Elon Musk, alleging that the Tesla CEO actively manipulated the company’s stock for personal gain.
The lawsuit alleges that Musk “brought down Twitter’s stock substantially by making statements, sending tweets, and engaging in conduct designed to arouse suspicion about the deal in order to create leverage to buy Musk.” be expected to be used to exit or renegotiate the buyout price.
The Verge reported late Thursday that the proposed class-action lawsuit was filed on behalf of Twitter shareholders in federal district court in San Francisco.
“Musk’s conduct in violation of the California Corporation Code was and continues to be illegal and contrary to the terms of the contract he agreed to in the deal,” the complaint said.
It focused on Musk’s recent tweet that the $44 Billion Twitter Deal “cannot proceed” without more information about fake accounts and bots on the platform.
The report said the complaint sought injunctive relief from the court, which could potentially force Musk to buy Twitter for the agreed-upon price.
In a recent filing with the US Securities and Exchange Commission (SEC), Musk has announced the termination of a series of margin loans against Tesla stock.
They have now committed to providing an additional $6.25 billion in equity financing for their $44 billion Twitter acquisition, bringing their total equity commitment to $33.5 billion.
Musk’s original plan was to acquire Twitter with a combination of $21 billion in personal equity and $25.5 billion in debt, and $12.5 billion of those loans were secured against Tesla shares owned by Musk.
According to the new SEC filing, “(Elon Musk) has committed to increase the total principal amount of the equity commitment to $33.5 billion.”
However, it is not clear where the additional $6.25 billion will come from.
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