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Twitter Investor Sues Elon Musk In A Bid To Force Through $44 Billion Takeover
Dado Ruvic / reuters
August 2nd, 2022 | 11:59 AM | 692 views
CALIFORNIA, UNITED STATES
The proposed class action suit accuses Musk of breaching his fiduciary duty to Twitter shareholders.
It's not only Twitter that's trying to force Elon Musk to buy the company for $44 billion. An investor filed a proposed class action lawsuit to try stopping Musk from backing out of the deal. Luigi Crispo's suit accuses Musk of breach of contract and breach of fiduciary duty to Twitter's shareholders, according to Bloomberg. It claims he offered feeble "rationales for reneging on his contract." Two “corporate acquisition entities” connected to the deal are also named as defendants.
Musk last month attempted to wash his hands of his bid to buy Twitter, claiming the company made “false and misleading representations” and that it misrepresented the number of bots and fake accounts on its platform. Crispo concurred with Twitter's claims that Musk is using false claims about bots and spam to wriggle out of the deal without a valid legal standing to do so. Also like Twitter, Crispo is seeking a court order that would require Musk to complete the buyout.
After he tried to back out, Twitter swiftly sued Musk in an attempt to make him "honor his obligations" and buy the company. Last week, Musk made a counter filing, which remains sealed for now. A judge granted Twitter's request for an expedited trial, which is scheduled to start on October 17th and last for five days. Its shareholders will vote on the takeover on September 13th.
Meanwhile, Crispo holds 5,500 shares in Twitter. Those are worth nearly $300,000 at the $54.20 per-share offer Musk made to buy Twitter outright back in April. The shares are currently worth $223,000 at Twitter's current share price, which was $40.55 at the time of writing.
courtesy of ENGADGET
by Kris Holt
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