Elon Musk Hit With A Lawsuit From Twitter Shareholders For Tanking The Stock
Elon Musk continues to surprise and shock the world by wasting his time on Twitter shenanigans. After attempting to buy the company for $43 billion in April, the deal still hasn’t closed. Mainly because Elon keeps acting like an ass. He’s acted SO much like one that Twitter has finally said, “Buy it now, bitch!” and has slapped the billionaire with a lawsuit, claiming that he’s been trying to drive down the stock price. Instead of secluding yourself on an island and doing nothing forever like what the rest of us would do if we had billions of dollars, Elon continues to do stupid shit for the lulz!
Twitter users have been monitoring the situation to find out if the social media platform will stay the same (read: moderate levels of harassment) or become the home for “free speech” (read: LOTS more harassment) But America’s third-tier Iron Man keeps dragging the deal out. According to rough history, Elon bought up enough shares to become Twitter’s majority shareholder; entertained then rejected becoming a board member; announced that he would straight up purchase the platform for $43 billion; fought with Twitter shareholders some more until everyone eventually settled on the buyout; stated that he was putting everything on hold until Twitter could prove that the site wasn’t riddled with bots, and then declared that he was becoming a Republican because he got accused of being a sex pest! The last part isn’t part of the Twitter buyout saga, but I think it’s important to remember that dealing with Elon isn’t fun for anyone. Now Twitter is bringing out the lawyers. via Yahoo! Finance:
Twitter shareholders have filed a lawsuit accusing Elon Musk of engaging in “unlawful conduct” aimed at sowing doubt about his bid to buy the social media company.
The lawsuit filed late Wednesday in the U.S. District Court for the Northern District of California claims the billionaire Tesla chief executive has sought to drive down Twitter’s stock price because he wants to walk away from the deal or negotiate a substantially lower purchase price.
In Elon’s haste to buy his favorite platform for Obi-Wan hot takes and nuanced discussions about racism, he waived his right to due diligence. Basically, it’s a “take it or leave it offer.” Meanwhile, Tesla’s stock has dropped almost a third in value since April. Elon planned to use this to fund the purchase.
In response to the plunging value of Tesla’s shares, the Twitter shareholders’ lawsuit claims Musk has been denigrating Twitter, violating both the nondisparagement and nondisclosure clauses of his contract with the company.
“In doing so, Musk hoped to drive down Twitter’s stock price and then use that as a pretext to attempt to renegotiate the buyout,” according to the lawsuit.
The lawsuit also references Elon’s initial purchase of Twitter stock in early April which made him the majority stakeholder. It was shady to say the least.
Before announcing his bid to buy Twitter, Musk disclosed in early April that he had bought a 9% stake in the company. But the lawsuit says Musk did not disclose the stake within the time frame required by the Securities and Exchange Commission.
“By delaying his disclosure of his stake in Twitter, Musk engaged in market manipulation and bought Twitter stock at an artificially low price,” the lawsuit says.
So, we still don’t know who owns Twitter after about a month of SEC-related drama. What we do know is that Elon is losing his golden boy status. I’m seeing fewer Elon quotes on those Rise & Grind Instagram accounts or on LinkedIn influencer pages. You know you’re in the shit when LinkedIn turns on you! They’ll gas up any ghoul who says working at a desk from 5am-3am is the only real route to happiness.