Twitter shareholders sue Elon Musk and Twitter over chaotic deal

A lawsuit has been filed by shareholders against Musk and the company over their handling of a chaotic acquisition process that is still underway, which has contributed to volatile price swings in the company's stock price.

On April 4th, the CEO of the company revealed a stake in the company and ten days later proposed a deal to take the company private. He pledged a portion of his holdings as security for loans in order to finance the deal.

Since Musk's acquisition bid, the share price of both companies has fallen. Since Musk first revealed his stake, the share price of the company has fallen by 40%.

According to the proposed class action lawsuit, Musk violated California corporate laws on several fronts and engaged in market manipulation.

They claim that Musk benefited financially by concealing his plan to become a board member at the social network and by delaying required disclosures about his stake in the company.

The complaint says that Musk knew about the company's secrets from conversations he had with board members and executives, including Jack Dorsey, a long-time friend of Musk.

The board of directors accepted the resignation of Dorsey on Wednesday. The shareholders voted not to re-instate the city.

Musk broke California laws by sowing doubt about whether he would complete the deal after signing the contract to buy it, according to the proposed class action lawsuit.

Earlier this month, Musk said he was putting the acquisition on hold to learn more about inauthentic activity on the platform.

His gripes about the deal were part of a scheme to negotiate a better price or kill the deal.

Musk tried to create doubt about the deal and drive the stock down so that he could either back out of the purchase or negotiate a better deal.

California state law requires corporations in the state to exclude board members from voting on proposals if they have engaged in certain types of behavior.

It was not possible to comment on the matter. Musk didn't reply to requests for comment.

The case was filed in a California Northern District Court and the shareholders are seeking a jury trial. The shareholders complaint is subject to further revisions.