Shulou(Shulou.com)11/24 Report--

According to the news in the afternoon of October 11, Beijing time, Tesla CEO Elon Musk (Elon Musk) was sued by Twitter investors today, accused of "playing hard to get" in the acquisition of Twitter while constantly attacking Twitter, all in order to manipulate Twitter's share price.

Twitter investor Giuseppe Panpena (Giuseppe Pampena) filed a class action lawsuit in federal court in San Francisco today, accusing Musk of "playing hard to get" in the acquisition of Twitter, causing Twitter's share price to plummet, boosting Musk's bargaining power while harming Twitter investors.

Pampena also said that Musk agreed to buy Twitter for the original price (about $44 billion) last week, basically acknowledging the fact that he was bluffing when he said he was pulling out of the deal.

After announcing the abandonment of the deal, Musk issued a series of statements and tweets aimed at creating uncertainty about the deal, causing Twitter's share price to fall sharply, Mr. Pampena said in the indictment. Musk's move is to create leverage and use it to exit the acquisition or renegotiate the purchase price. Such behavior is fraudulent and illegal.

In the weeks before announcing the continued acquisition of Twitter, Musk's representatives approached Twitter several times in the hope of renewing the deal at a lower price, according to people familiar with the matter. Mr Musk initially asked for a discount of up to 30 per cent, which meant the purchase price would fall to about $31 billion from about $44 billion, but was rejected by Twitter, according to three of the people familiar with the matter.

On April 26 this year, Musk reached an agreement with Twitter to buy Twitter for about $44 billion in cash. But on July 9, Musk announced the termination of the transaction because Twitter had seriously violated many of the terms of the agreement, including the issue of false accounts. On July 13, Twitter filed a lawsuit against Musk.

The trial of the case was scheduled to begin on October 17 this year and will last for five days. But last Tuesday, Musk wrote to the Twitter saying that if a Delaware judge suspended the case, he would proceed with the deal on its original terms.

Judge Catherine McCormick (Kathaleen McCormick) then agreed to suspend the case and ordered the parties to complete the transaction by 5 p.m. on October 28. Otherwise, the court will reopen in November.

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