Elon Musk’s legal issues are becoming worse as he tries to back out of the $44 billion purchase of Twitter. The CEO of Tesla has previously been sued by the world’s largest social network for allegedly breaching the contract. Now, a Twitter investor has joined the firm in threatening the billionaire with a potential class action lawsuit in an effort to pressure him into purchasing the business.
AN INVESTOR FROM TWITTER JOINS THE COMPANY TO FIGHT ELON MUSK Investor Luigi Crispo has reportedly filed a lawsuit in the same Delaware Chancery Court where Twitter has also filed a complaint, according to Bloomberg . According to the lawsuit, Musk provided weak justifications for breaching his contract. It alludes to his assertions that Twitter misreported the percentage of phony or automated accounts using the service.
Less than 5% of Twitter’s monetizable users, according to Twitter, are bogus accounts. Musk, though, argued that this number is false. If the corporation doesn’t provide additional details on the process used to count the phony accounts, he has repeatedly threatened to withdraw from the agreement. It seems he never got a satisfactory answer. After a public dispute that lasted for several weeks, Musk publicly started the process of breaking the agreement he made a few months earlier.
Advertisement Twitter, of course, wouldn’t allow him to leave without a word. Soon later, the business sued him as predicted. In order to force the Tesla CEO to finish the buyout, the social media behemoth is asking the court to issue an order. Now a displeased investor has joined it. According to reports, Crispo has added two corporate acquisition companies to the list of defendants in addition to Musk.
According to the most recent filing, Crispo has 5,500 Twitter shares. Those would have been worth close to $300,000 at Musk’s bid price ($54.20 per share). However, Twitter is currently selling at a much lower price per share of $40.89. At this pricing, Crispos shares are worth slightly over $224,000. It makes sense why they are requesting a court order to compel the social media business to go through with a high-profile privatization.
In October, the court proceedings will start. Last Monday, Elon Musk formally reacted to Twitter’s lawsuit. Although Musk attempted to delay the trial as much is possible, the court has granted Twitter’s request for an expedited trial while his counter petition is still secret. The court case will go on for five days starting on October 17th. On September 13, the company’s shareholders are expected to vote on the proposed sale. How this saga concludes will be interesting to observe. We’ll keep you informed on all the most recent developments.
