Twitter Investors Sue Musk: Suit Alleges His Plan Was to 'Drive Twitter’s Stock down Substantially in Order to Create Leverage'

Among the headaches that Elon Musk faces regarding his proposed takeover of Twitter is now an investor lawsuit claiming that Musk “manipulated the company’s stock price downward” during the course of his involvement in the company.

Investors are alleging that Musk saved himself $156 million by not reporting, in a timely fashion, that he had purchased more than 5% of Twitter by March 14, a new report from Bloomberg/Yahoo says.

The investors also asked to be certified as a class and to be awarded both punitive and compensatory damages. In addition to Musk, Twitter was also named as a defendant, as investor agued that the company didn’t do enough to look into Musk’s conduct.

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