(ORDO NEWS) — Twitter investor Giuseppe Pampena has filed a lawsuit against Elon Musk in San Francisco Federal Court. He claims that the latter manipulated the value of Twitter’s stock to bring it down by $11 billion.
Pampena argues that Musk’s recent decision to buy Twitter at its original $44 billion price tag is effectively an admission that he was “bluffing all along” about pulling out of the deal. This behavior was not without consequences.
What is known
The suit alleges that by blaming Twitter for bot overflows and other problems, Musk manipulated the company’s share price.
He began making statements, tweeting and engaging in activities designed to cast doubt on the deal.
Thus, the billionaire allegedly tried to create leverage, which he hoped to use to refuse to buy or significantly reduce the price of shares – by at least 25 percent, which is equal to $ 11 billion.
Musk’s behavior was fraudulent and illegal, says Giuseppe Pampena.
Recall that in early October, the media were filled with headlines that Elon Musk again wants to buy Twitter for the same amount that was discussed from the very beginning – $ 44 billion.
The company received a corresponding letter from the billionaire’s lawyers. The share price immediately rose first by 18% and then by 22.4%.
Musk had expected Twitter to immediately drop its lawsuit, which is set for October 17 in Delaware. However, as the media later reported, quoting the entrepreneur, “they insist on extending this lawsuit, recklessly jeopardizing the agreement and endangering the interests of their shareholders.”
It is likely that the court session will be postponed or even canceled if the parties nevertheless resolve the conflict.
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