American billionaire Elon Musk will appear in court in the case of his acquisition of Twitter Inc. in 2022 at the request of investors. About this informs Bloomberg.
Investors believe that Musk’s constant hesitation to buy the social network was just a tactic aimed at reducing the value of its shares. Initially, Musk’s lawyers tried to avoid his personal presence at the hearing, but he agreed to meet with representatives of investors on April 3 in Washington.
The plaintiffs say his public attacks on Twitter management and uncertainty over the deal cast doubt on its completion, sending the stock tumbling, hurting investors but also improving Musk’s own negotiating position.
Still, the billionaire consummated the deal and bought the company for $44 billion after his attempt to back out of the deal led to a lawsuit. In December 2023, a federal judge in San Francisco refused to dismiss Musk’s case, stating that his statements “actually create an impression that is materially different from the actual state of affairs.”
In addition, in January, the US Securities and Exchange Commission filed a lawsuit against Musk for violating information disclosure rules. In particular, he did not report on time the increase in his stake in Twitter before the acquisition of the company.
The regulator alleges that Musk secretly bought shares at discounted prices, depriving other shareholders of the opportunity to receive fair value for their assets. Total losses for them are estimated at more than 150 million dollars.
