Elon Musk accused of stock manipulation

Twitter shareholders led by William Heresniak have accused Elon Musk of stock manipulation, with social media posts that devalue Twitter’s stock.

stock manipulation

On May 26, shareholders filed a lawsuit in the federal court for the Northern District of California to restore the Twitter acquisition that Elon Musk is deliberately delaying, and ask Musk to pay damages to the company. shareholders.

Earlier in April, billionaire Elon Musk announced an agreement to acquire Twitter for $ 44 billion, at a price of $ 54.2 / share.

However, after that, the billionaire repeatedly found reasons to delay this deal. Specifically, Musk publicly stated that the accounts on Twitter are all fake accounts, virtual accounts.

The lawsuit alleges that Musk is deliberately driving down the stock price to buy Twitter at a cheaper price, or cancel the deal without paying a penalty.

Musk’s “market manipulation” behavior is causing Twitter’s stock price to drop. The social network’s share price is now only $39.52, away from the $54.2 price when Musk announced the acquisition. Shares of the social networking platform fell more than 12%, while Tesla stock plunged more than 40%.

Currently, Musk has not posted any tweets about this incident.

stock manipulation

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