Elon Musk and Twitter Inc were sued Friday by a Florida pension fund seeking to stop Musk from completing $ 44 billion to take over the social media company before 2025.
In a proposed class action filed in the Delaware Chancery Court, the Orlando Police Pension Fund said Delaware law prohibited immediate integration because Musk had contracts with other major Twitter shareholders, including his financial advisor Morgan Stanley and Twitter founder Jack Dorsey, to support the purchase.
The fund said the agreements made Musk, who owns 9.6 percent Twitter, an active “owner” of more than 15pc of shares of the company. He said it wanted to delay the consolidation by three years unless two-thirds of his “owned” shares were approved.
Morgan Stanley owns about 8.8pc of Twitter shares and Dorsey owns 2.4pc.
Musk hopes to complete $ 54.20 per share on Twitter taken this year, at one of the highest prices in the world.
He also runs the electric car company Tesla Inc, which leads Boring Co and SpaceX, and is the richest man in the world according to. Forbes magazine.
Twitter and its board, including Dorsey and Chief Executive Parag Agrawal, were also named as defendants.
Twitter declined to comment. Musk’s lawyers and the Florida fund did not immediately respond to requests for comment.
The lawsuit was also filed with the Twitter jurisdiction over alleged breach of trust, as well as reimbursement of legal fees and costs. It was not clear how the shareholders believed they would be harmed if the connection was closed on schedule.
On Thursday, Musk said he had raised about $ 7 billion, including fundraisers and friends in Silicon Valley, to help with the takeover.
Musk had no money when he announced plans to buy Twitter last month.
Some of the new investors seem to be sharing their interests with Musk, an absolute-defining absolutist who can change the way a San Francisco-based company moderates content.
The Florida Retirement Fund is also investing in Twitter, and Governor Ron DeSantis said this week it could make $ 15 billion to $ 20 billion for Musk to finalize his purchase.
On the day of the sale, Twitter shares were down 60 cents at $ 49.76.
The case is being investigated by Orlando Police Pension Fund v Twitter Inc et al, Delaware Chancery Court, No. 2022-0396.