Elon Musk was accused of financial manipulation when buying Twitter

A group of shareholders of Twitter Incorporated is going to sue the administration of the social network for refusing to investigate Elon Musk’s financial manipulations in anticipation of the asset purchase. The statement of claim is already ready, Reuters informs.
Details

The essence of the claims is that Musk concealed the fact of buying over 5% of the platform’s shares until March 14, 2022 (on that day, the billionaire announced his readiness to buy out the social network for $44 billion). The preliminary acquisition of the specified block of shares allowed the businessman to save $ 156 million, lawyers biased by the plaintiffs say.

The secret purchase of papers made it possible to increase the share of Twitter shares controlled by Musk to 9.2% by the time the announcement of readiness to put the social network under its sole control was announced.

The defendant is the leadership of Twitter, which, according to the plaintiffs, was obliged to conduct an investigation into the acts of the Musk. The plaintiffs are seeking to be certified as an affected group and to be reimbursed for an undisclosed amount of compensatory, punitive damages and damages.

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