It became known that Twitter shareholders have sued Elon Musk and the company itself. In doing so, they showed their dissatisfaction with the chaotic course of the deal to sell the company to Musk, which led to a significant drop in the value of Twitter shares.
Musk is reportedly being accused in a class action lawsuit by shareholders of violating several sections of California corporate law and of rigging the stock market. One of those breaches comes as the billionaire has failed to disclose information about his stake in Twitter and plans to allegedly buy the company for a profit.
It is also noted that Musk began buying shares in the company and had inside information obtained from former Twitter CEO Jack Dorsey (Jack Dorsey) and one of the heads of the investment company Solver Lake Partners, Egon Durban, the board of directors of Twitter. The lawsuit alleges that Musk violated state law by suspending the Twitter purchase under the pretense of testing the size of the platform’s actual user base in order to obtain better terms.
Since the beginning of the Twitter deal with Elon Musk, the company’s shares have reportedly lost 12%, while the value of Tesla, owned by the billionaire, has fallen 28%. In early April, Elon Musk made an offer to buy Twitter for $44 billion at $54.20 per share.