Twitter shareholders have sued Elon Musk again. This is the second time a lawsuit has been filed against him, ever since he began making moves to acquire Twitter.
The group of shareholders wants the court to take action against Elon Musk for manipulating Twitter’s stock for personal gain.
Elon Musk announced a few days back that the Twitter deal is on hold. He said that it would only move further after the company provides clear stats of bot accounts on Twitter.
The reason behind the new lawsuit
Elon Musk began buying Twitter shares and expressed a desire to buy the platform. During this time, he continued to lambast Twitter because of its policies. Recently, he put the deal on hold which anguished the Twitter shareholders even further.
The Verge shared the link to the copy of the complaint filed against the Tesla owner on 25 May 2022. Twitter shareholders address the most recent issues and fall in the share price due to Elon Musk’s public statements.
An excerpt from the complaint reads, “Musk proceeded to make statements, send tweets, and engage in conduct designed to create doubt about the deal and drive Twitter’s stock down substantially in order to create leverage that Musk hoped to use to either back out of the purchase or re-negotiate the buyout price.“
Elon Musk is the cause of the falling Twitter Stock?
Elon Musk offered to buy Twitter at $54.20 per share, which seems generous at this point. Twitter’s shares were trading around mid-30’s a few months back. The current prices are well within the $40 mark. Shareholders speculate that the Tesla owner is single-handedly driving the value of the Twitter stock down.
Elon Musk hasn’t been mum about Twitter policies and features. He continues to post speculations and flaws of the social media platform. Moreover, he has a significant follower base that can cause massive ripples in the stock market just by acting on his vague statements.
Twitter claims that the bot accounts are well within the 5% mark but Elon wants to know more. Amid this tussle, Twitter shareholders aren’t in a good situation. Twitter agreed to pay $150 million in damages to settle a lawsuit for misusing personal data. The current lawsuit against Musk demands damages that will be distributed among all shareholders.