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The case of the takeover of the Twitter from the Elon Musk, as now shareholders of the platform are pointing to the fact that the tycoon delayed in announcing the acquisition of a stake in the company before announcing his intention to take it over and are suing him.

US law requires anyone who acquires more than 5% of a company to disclose this to the US Securities and Exchange Commission (SEC) within ten days of the date of acquisition. Thus, other shareholders are informed and act accordingly, since such a move indicates that the person who acquired the block of shares probably wants to take over the company.

Musk did not announce the acquisition of over 5% shares within this timeframe and did so when he had now acquired 9.2% of shares, while also announcing his decision to take control of the platform.

Still no decision has come out of Sec, while a group of investors filed a lawsuit against Musk on Wednesday, May 26 for stock manipulation. They accuse him of using this tactic to trick shareholders to reap benefits while they and the platform as a whole were being harmed.

Moreover, they accuse him that the deal he wants to close is "chaotic" as they call it and point to Musk's recent decision to freeze the acquisition process, arguing that the percentage of bots on Twitter is probably higher than the 5% he had set as a threshold to implement the acquisition.

The plaintiffs have not yet determined the amount of compensation they are seeking, waiting for other people to join them first.

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