The Orlando Police Pension Fund has filed a lawsuit against Elon Musk’s purchase of Twitter. The organization claims that the businessman violated state laws in completing the deal. Reuters writes about it.
According to the investor, Musk could not take over Twitter before 2025 unless the 75 percent shareholders approved the deal. The plaintiff also accused platform head Parag Agrawal and other board members of breach of fiduciary responsibility and sought damages and attorneys’ fees.
In early April, it was announced that Musk had bought a 9.2% stake in the social network. He then explained that the service could not develop according to the current model and should serve freedom of expression. He soon made an offer to buy the platform, which was initially rejected by Twitter but later reconsidered. The volume of the transaction will be $44 billion, about which a relevant agreement has been signed. The deal was approved by the board.
In mid-April, Marc Rasella sued Musk. He represents a group of investors who sold shares in the social network between March 24 and April 1. The plaintiff accused Musk of concealing the purchase of an initial stake in the company, which allegedly allowed him to purchase shares at a reduced price. Recall that the stock price is up 26% since the deal was announced.