Several Twitter investors and shareholders started suing Tesla, SpaceX chairman and the owner of the leading social media platform Elon Musk, The Telegraph reported on Friday.
The investors accused Musk of driving down the value of the platform’s shares by cutting the price of buying the company which was estimated at $44 billion.
They also claimed that Musk “mitigate personal [financial] risks to himself by engaging in unlawful conduct that moved the price of Twitter’s stock down,” according to a lawsuit filed in California.
William Heresniak filed the lawsuit on behalf of several Twitter shareholders against the billionaire and the company.
Twitter’s shares sharply declined in recent weeks after announcing that Musk put the takeover of the company on hold.
Previously, the Tesla chairman announced that his plan for Twitter’s takeover is on hold temporarily.
He said that he wants to review his plans due to the huge presence of spam and fake accounts on the platform in the first-quarter financial report for 2022.