Not just Twitter is attempting to pressure Elon Musk into buying the business for $44 billion. An investor tried to prevent Musk from pulling out of the purchase by filing a proposed class action lawsuit. According to Bloomberg, Musk is accused of breaching a contract and his fiduciary obligation to the shareholders of Twitter in Luigi Crispo’s lawsuit. It states that he provided weak “rationales for breaching his contract.” Additionally identified as defendants are two “corporate acquisition companies” involved in the transaction.
Last month, Musk made an effort to distance himself from his purchase of Twitter by saying that the firm made “false and misleading statements” and exaggerated the amount of bots and phony accounts that were present on its site. Crispo agreed with Twitter’s assertions that Musk is attempting to back out of the agreement without having a legitimate legal basis to do so by making untrue statements regarding bots and spam. Similar to Twitter, Crispo is asking a judge to issue an order compelling Musk to finish the buyout.
Twitter quickly sued Musk when he tried to back out in an effort to have him to “respect his duties” and purchase the business. Musk submitted a counter filing last week, which is currently still under seal. Twitter requested an expedited trial, which the judge allowed. The trial is set to begin on October 17 and last for five days. On September 13th, the company’s shareholders will vote on the takeover.
Crispo now owns 5,500 shares of Twitter. At the $54.20 per share Musk offered to buy Twitter outright back in April, those are worth about $300,000. At Twitter’s current share price, which was $40.55 at the time of writing, the shares are currently worth $223,000 at market.
