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Musk sued by Twitter investors: 'Hard to play' aims to manipulate Twitter stock price

  • linda
  • 2022-10-11 22:20:52
  • 385 read
  Tesla CEO Elon Musk (Elon Musk) was sued by Twitter investors today, accused of "playing hard to escape" in...

  Tesla CEO Elon Musk (Elon Musk) was sued by Twitter investors today, accused of "playing hard to escape" in the acquisition of Twitter. Also keep attacking Twitter, all in order to manipulate Twitter's stock price.

  Today, Twitter investor Giuseppe Pampena filed a class-action lawsuit in federal court in San Francisco, accusing Musk of "playing hard" in the acquisition of Twitter, causing Twitter's stock price to plummet, while improving Musk's bargaining power. , but to the detriment of Twitter investors.

  Pampena also said that last week, Musk agreed to buy Twitter for the original price (about $44 billion), basically acknowledging the fact that he had been bluffing when he said he was pulling out of the deal.

  Pampena alleges in the indictment that after announcing the abandonment of the deal, Musk made a series of statements and tweets aimed at creating uncertainty about the deal, causing Twitter's stock to plummet. Musk's move is to create leverage and use that leverage to exit acquisitions or renegotiate the price. This behavior is fraudulent and illegal.

  In the weeks leading up to the announcement, Musk’s representatives approached Twitter several times, hoping to renegotiate the deal at a lower price, people familiar with the matter said. Musk initially asked for a discount of as much as 30 percent, which would have meant the purchase price would drop to about $31 billion from its previous value of about $44 billion, but was rejected by Twitter, three of the people said.

  On April 26 this year, Musk and Twitter reached an acquisition agreement, and Musk will acquire Twitter for about $44 billion in cash. But on July 9, Musk announced that it was terminating the deal, citing Twitter's serious breaches of several terms of the agreement, including the issue of fake accounts. On July 13, Twitter filed a lawsuit against Musk.

  The case was originally planned to be officially opened on October 17 this year for a five-day trial. But last Tuesday, Musk wrote to Twitter saying that if a Delaware judge suspends the case, he will continue the deal on its original terms.

  Judge Kathaleen McCormick then agreed to adjourn the case and gave both parties until 5 p.m. on Oct. 28 to complete the deal. Otherwise, the court will reopen in November.


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