Apparently, the world’s wealthiest man isn’t above haggling for a better deal. Twitter shareholders are suing Elon Musk in a new lawsuit, alleging that he manipulated the price of the company’s stock for his own gain while promising to buy it. The action is on behalf of a group of Twitter investors, but it would allow any shareholder to be compensated financially.
Musk is accused of purposely driving down the company’s shares to gain a better price, according to the lawsuit, which was filed in federal district court in Northern California on Wednesday. According to the complaint, musk’s misleading claims and improper behaviour have harmed the fair market value of Twitter stocks.
Musk’s ability to finance his acquisition of Twitter is in “serious jeopardy,” according to the investors because he has pledged his shares as security to acquire the loans he needs to buy the firm.
On Thursday, Tesla’s stock was selling at roughly $700, down from over $1,000 in early April.
According to the Wall Street Journal, the timing of Musk’s ownership announcement has already prompted an investigation by the US Securities and Exchange Commission (SEC).
Musk offered an additional $6.25 billion in equity funding to fund his bid for Twitter on Wednesday, indicating that he is attempting to close the acquisition despite requiring Twitter to show proof that spam bots account for less than 5% of its users last week.