The lawsuit notes, however, that Musk waived due diligence for his “take it or leave it” offer to buy Twitter. In response to the plunging value of Tesla’s shares, the Twitter shareholders' lawsuit claims Musk has been denigrating Twitter, violating both the non-disparagement and non-disclosure clauses of his contract with the company. "In doing so, Musk hoped to drive down Twitter’s stock price and then use that as a pretext to attempt to re-negotiate the buyout,” according to the lawsuit. Before announcing his bid to buy Twitter, Musk disclosed in early April that he had bought a 9% stake in the company. “By delaying his disclosure of his stake in Twitter, Musk engaged in market manipulation and bought Twitter stock at an artificially low price,” the lawsuit says.

Source: ABC News May 27, 2022 15:52 UTC