A Twitter investor is suing Elon Musk and the social media platform over the handling of the billionaire’s $44 billion bid for the company.
The lawsuit filed late Wednesday claims the Tesla CEO has sought to plunge Twitter’s stock because he wants to walk away from the deal or negotiate a lower price.
Musk is accused of engaging in “unlawful conduct” aimed to put on hold his bid. “False statements and market manipulation have created chaos at Twitter’s headquarters in San Francisco.”
Frank Bottini, one lawyer representing Twitter investors, told the BBC that the lawsuit was filed as Musk continues to discredit the company in an effort to renegotiate the purchasing price. “The complaint we filed in San Francisco seeks to hold Musk liable for his unlawful conduct,” Bottini said.
Twitter is also named as a defendant in the lawsuit, which seeks class action status as well as compensation for damages.
After Musk initially offered to buy Twitter for $44 billion later said the deal can’t go forward until the company provides reliable information about spam accounts or bots. Today, Twitter shares are around 27% lower than Musk’s $54.20 offer price.
The lawsuit was filed at the US District Court for the Northern District of California by William Heresniak.