"The lawsuit was filed in October 2022 in the U.S. District Court for the Northern District of California on behalf of Twitter shareholders who sold the stock between May 13 and Oct. 4, 2022, a few weeks before Musk's purchase of Twitter was finalized. It claims Musk violated federal securities laws by making false, public statements that "were carefully calculated to drive down the price of Twitter stock.""
"Musk's May 13 tweet - "Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users" - was "false because the buyout was not, in fact, 'temporarily on hold,'" the lawsuit says. That's because Twitter did not agree to put the deal on hold, and there was nothing in the merger agreement the two parties signed that allowed Musk to put it on hold."
"In the following weeks, Musk continued to try to delay or get out of the deal, which the lawsuit claims he did in the form of false, disparaging statements about Twitter's business that drove the San Francisco company's stock down sharply."
Elon Musk is testifying in a shareholder lawsuit filed in October 2022 by Twitter stockholders who sold shares between May and October 2022. The plaintiffs claim Musk violated federal securities laws by making false and misleading public statements designed to artificially depress Twitter's stock price. After agreeing to purchase Twitter in April 2022, Musk declared the deal "temporarily on hold" on May 13, citing concerns about spam and fake accounts. The lawsuit argues this statement was false because Twitter never agreed to halt the deal and the merger agreement contained no provision allowing Musk to pause it. Musk subsequently made additional disparaging claims about Twitter's business, further driving down stock prices as he attempted to delay or exit the acquisition.
Read at ABC7 Los Angeles
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