Elon Musk And Twitter Sued By Shareholder Over $44b Takeover

Elon Musk and twitter

A Florida pension fund has sued Elon Musk and Twitter Inc, attempting to prevent the Tesla CEO from completing his $44 billion buyout of the platform.

According to Reuters, the Orlando Police Pension Fund claimed in a case filed in Delaware Chancery Court on Friday that under Delaware law, Mr Musk cannot consummate the buyout until at least 2025 unless two-thirds of shares not “owned” by him consent.

According to the complaint, Mr Musk became a “interested stockholder” after purchasing a 9.1% stake in Twitter, necessitating the wait.

Mr Musk also leads Tesla Inc, an electric vehicle manufacturer, and is the world’s wealthiest person.

Twitter and its board of directors, including CEO Parag Agrawal, are listed as defendants as well.

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The complaint wants to postpone the merger until at least 2025, declare Twitter directors to have broken their fiduciary obligations, and reclaim legal expenses and costs.

Twitter has refused to respond.


Mr Musk’s counsel did not reply to a request for comment right away.

Mr Musk’s potential acquisition has been the subject of legal action before.

A group of Twitter shareholders sued Mr Musk last month, alleging that he failed to disclose his 9.2% ownership in the firm in a timely manner.

Federal law requires investors to report interests more than 5% to the Securities and Exchange Commission within 10 days after acquisition.

Per the previous lawsuit, Mr Musk reached the 5% mark on March 14 and had to notify the SEC by March 24. He did so, though, on April 4th.

For weeks, Mr Musk’s motivation for buying all of the company’s shares in order to take it private has been the subject of intense conjecture.

The platform’s eccentric CEO has stated that he wants to safeguard free expression and increase transparency.

He rejected allegations earlier this week that the takeover was the result of talks with Donald Trump, who was banned from Twitter after the rioting in the Capitol on January 6, 2021.