Twitter shareholders accuse Musk of market manipulation in lawsuit

Twitter shareholders sue Musk, say he 'deflated' stock price

May 26, 2022 by Fortune

Key Facts

  • Twitter shareholders have filed a lawsuit accusing Elon Musk of engaged in “unlawful conduct” aimed at sowing doubt about his bid to buy the social media company.
  • In response to the plunging value of Tesla’s shares, the Twitter shareholders' lawsuit claims Musk has been denigrating Twitter, violating both the non-disparagement and non-disclosure clauses of his contract with the company.
  • Before announcing his bid to buy Twitter, Musk disclosed in early April that he had bought a 9% stake in the company.
  • And the lawsuit says his eventual disclosure of the stake to the SEC was “false and misleading” because he used a form meant for “passive investors” — which Musk at the time was not, because he had been offered a position on Twitter's board and was interested in buying the company.

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