Elon Musk is being sued. Tesla founder Elon Musk had recently sought Twitter shares. This new venture has cost the tech giant dearly.
Elon Musk is one of the strictest users of Twitter. The eccentric billionaire, who is often on the agenda with his statements on his Twitter account, decided to expand his investment in his favorite social media platform. This decision When Elon Musk is sued took on a whole new dimension.
Elon Musk lawsuit and behind the scenes
Musk, who has recently announced that he will increase his Twitter shares to 9.2%, is in trouble because of the same shares. One of Twitter’s stock partners took Elon Musk’s delay in getting his investment officially approved by the United States Securities and Exchange Commission.
This isn’t the first time Elon Musk has made the move that led to the lawsuit. It is estimated that the billionaire, who waited 10 days while increasing his shares to 5% before and completed the transactions on March 24, made close to 156 million dollars in this period. Musk followed a similar strategy in the new share increase. According to what was written in the court report, the Tesla CEO was 11 days late in completing the official proceedings this time.
What can happen during the litigation process?
According to the other shareholder who took the matter to court, Elon Musk is doing this to cause an artificial drop in share prices. The delay casts doubt on the market for investment and causes stock values to depreciate. When Musk finishes official transactions, he buys the shares at a much more affordable price. Speculating in the stock market is a serious crime all over the world.
This attitude of Elon Musk in raising Twitter shares also causes administrative difficulties. It is known that Musk wants a seat on Twitter’s board of directors. However, both management and employees, as well as shareholders, are very reluctant to give this seat to Musk.