Did Elon Musk push Twitter’s stock price?30. May 2022
Did Elon Musk push Twitter’s stock price?
In a newly filed class action lawsuit, Elon Musk is accused of depressing Twitter’s stock price through his conduct. A shareholder, William Heresniak, filed the lawsuit in the Northern District of California. He is referring to Musk’s tweets and other conduct that he says served to “raise doubts about the deal” that Musk could potentially use to create leverage to back away from or renegotiate his $44 billion acquisition of Twitter.
The lawsuit was filed this week on behalf of Twitter shareholders. It alleges that Musk’s concerns about Twitter’s spam/fake accounts were an attempt to secure a discount on Twitter.
The lawsuit states that Musk “was well aware that Twitter had a certain number of ‘fake accounts’ and accounts controlled by ‘bots'”
The lawsuit also refers to Musk’s late disclosure of his 9% stake in Twitter and says the Tesla CEO engaged in “market manipulation” to buy shares at a lower price to save $156 million.
Earlier this month, Musk said a purchase of Twitter at a lower price was “not out of the question.”