Prosecutors accuse Tesla’s boss of delaying the moment he revealed that he had taken a stake in Twitter, a legal obligation that goes beyond certain limits.
Twitter shareholders have filed a complaint against Elon Musk, whom they accuse of manipulating the market to save money when taking over the social network.
According to documents submitted to a California court on Wednesday, the plaintiffs accuse the head of Tesla of delaying the moment when he revealed that he had taken over a stake in Twitter, which is a legal obligation that goes beyond certain limits. The multibillionaire thus estimated that he saved some $ 156 million, because if he informed the market in time, he would pay more for some shares.
“By postponing the release of its stake on Twitter, Musk manipulated the market and bought shares at an artificially low priceInvestors’ lawyers, led by William Heresniak, assure. Since the beginning of April, the value of the platform on the stock exchange has fluctuated according to official information and tweets of a whimsical multibillionaire. When it announced on April 4 that it had reached more than 9% of Twitter’s capital, the action took off by 25%.
He was to join the board of directors (CA), and ultimately not, before announcing his intention to buy a San Francisco-based group worth a total of 44 billion. CA opposed it before giving up. Elon Musk said stop the operation and then continue. “Musk made a statement, sent tweets and took other actions aimed at sowing doubts and substantially reducing Twitter’s shares in order to create some freedom, which he hoped to use to withdraw from the agreement or renegotiate the agreement.Says the complaint.
The lawyers point out that part of the finances that the richest man in the world received were loans covered by his Tesla securities, which lost a lot of value in the process. Elon Musk on Wednesday increased the amount that he and his partners contributed to the takeover of Twitter to $ 33.5 billion, reducing the amount borrowed from banks.
The announcement pleased the market: Twitter action resumed 5% in the evening and continued on Thursday. The businessman with more hats (Tesla, SpaceX, Neuralink …) already had problems with the stock exchange police officer due to his tendency to tweet information that moves the prices of his listed companies.
It is followed by more than 95 million people on Twitter and plans to withdraw the social network from the stock exchange when it owns it.