Following the temporary suspension of Twitter acquisition by Dogecoin fan, Elon Musk, it seems like background details of a long war are emerging before things calm down. The famous billionaire’s acquisition of Twitter may face a snag as investors take to the courts.
Dogecoin lover Elon Musk’a case shock!
According to Reuters, Elon Musk has been sued by Twitter investors for delaying announcing his stake in the company. This issue was mentioned in a complaint to the California federal court on Wednesday. As Elon Musk plans to implement some plans, such as the use of Dogecoin (DOGE) on Twitter, developments affect the price of DOGE, albeit indirectly.
The main claim of the complaint is that Elon Musk saved $ 156 million by not revealing his total stake in the social media company as of March 14. They claim that to date, Musk has bought more than 5% of Twitter.
Did Elon Musk manipulate the market?
The meme coin Dogecoin fan allegedly resorted to market manipulation when buying the company’s shares at an ‘artificially low price’. The investor group, represented by William Heresniak of Virginia, highlights the following in Elon Musk’s Twitter acquisition:
Elon Musk continued to buy shares thereafter and eventually acquired 9.2% of the company in early April. announced that he has By delaying the announcement of his Twitter stake, Musk engaged in market manipulation and bought Twitter shares at an artificially low price.
The development comes against the backdrop of Elon Musk’s decision to temporarily suspend the Twitter deal. As you may recall from Kriptokoin.com news, the decision to stop was about verifying the details of calculating the share of spam and fake accounts for all Twitter accounts. Earlier, Musk confirmed the $44 billion deal with the Twitter board.
On Wednesday, Twitter co-founder Jack Dorsey stepped down as one of Twitter’s board members. That move was only a matter of time after he resigned from his CEO position last year. An announcement was made about this when the CEO left his post, and he effectively distanced himself from company operations.
Earlier today, the social media giant announced in an SEC filing that it added another $6.25 billion stake to Elon Musk’s Twitter deal.
