Elon Musk Hit With New Class Action Lawsuit From Twitter Investors
Before he even goes to trial against the social media platform.
Elon Musk is already engaged in a lawsuit with Twitter over their $44 billion USD acquisition deal that never came to be, but the Tesla and SpaceX CEO is now getting sued by the social media platform’s investors as well. The new class action lawsuit is being filed by Twitter investor Luigi Crispo at the Delaware Chancery Court, which is also responsible for the trial between Musk and Twitter. Crispo holds 5,500 shares in the social media company and is claiming that the tech tycoon has breached his fiduciary duties towards Twitter’s shareholders through his “lame rationales for reneging on his contract.”
He also agrees with Twitter’s stance that Musk’s reliance on the statistics relating to bots and spam to back out of buyout has no legal standing. When Musk made his acquisition offer to Twitter, Crispo’s shares were worth almost $300,000 USD at $54.20 USD per share, but uncertainty revolving around the deal and the subsequent lawsuit has sent the company’s shares plummeting. It’s currently $223,000 USD at just $40.55 USD per share.
Stay tuned as the story develops.
Elsewhere in the tech industry, TikTok could soon be launching its own music streaming service.
