Shareholders’ lawsuit dismissed against Musk over Twitter acquisition
Shareholders’ lawsuit dismissed against Musk over Twitter acquisition
Shareholders’ lawsuit dismissed against Musk over Twitter acquisition
An American judge has dismissed a class action lawsuit accusing billionaire Elon Musk of deceiving Twitter shareholders several times over the past year, during his $44 billion acquisition of the social media platform.
U.S. District Judge Charles Breyer in San Francisco said William Hersniak, filing the lawsuit on behalf of a group of shareholders, did not have the standing to sue because he challenged “mistakes related” to Musk’s acquisition of the company, rather than the fairness of the acquisition itself.
Breyer added that Hersniak did not explain the harm caused by Musk’s late disclosure of the purchase of a 9.2% stake in Twitter, which the lawsuit said allowed him to buy more shares at lower prices before announcing the acquisition, or the damage that occurred as a result of completing the acquisition a month later. And half of the planned date.
The judge also found no evidence that Musk helped two friends of his on the Twitter board, Jack Dorsey co-founder and Egon Durban, co-manager of Silver Lake Investments, bypass their fiduciary duties by favoring their interests and Musk’s.
It is noteworthy that Musk also runs the Tesla electric car company, and he is the second richest person in the world, according to Forbes magazine.
