Elon Musk was sued by a Twitter investor who claims that Musk''s on-again-off-again purchase of the social media platform and his public attacks on the company were designed to help sell its stock price. According to Giuseppe Pampena, when Musk agreed to proceed with his purchase of Twitter, at the initially agreed-upon price, he basically acknowledged that he had been lying all along about backing out of the deal.
According to a securities class-action lawsuit filed Monday in a federal court in San Francisco, flip-flops and Musk''s accusations about Twitter sunk its stock price, causing disgruntling investors, tout stumbling down Musk''s position.
Musk received $54.20 (roughly Rs. 4,500) per share, or $44 billion (roughly Rs. 3.6 lakh crore), but later announced that he would withdraw from the deal three weeks later.
Musk proceeded to make statements, send tweets, and engage in statements aimed to defy the deal and drive Twitter''s stock substantially down in order to increase Musk''s desire to leverage the company to reduce purchase price by as much as 25 percent, implying that, if achieved, the purchase price would be reduced by $11 billion (roughly Rs. 91,000 crore) according to the suit.
In the Twitter buyout saga, Musk has previously been sued at various times.
Quinn Emanuel Urquhart & Sullivan LLP, the law company that represents Musk in several legal issues, including the Twitter buyout, did not immediately respond outside regular business hours to a request for clarification.
- How Elon Musk Plans to Pay $44 Billion to Acquire Twitter
Bloomberg L.P.P. in 2022