The Florida Pension Fund filed a lawsuit against Elon Musk and Twitter on Friday. Attempts to buy Musk’s Twitter account for 4.4 billion have caused legal complications. News Reuters.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The lawsuit was filed in Delaware Chancery Court. The Orlando Police Pension Fund lawsuit states that under Delaware law, Mask cannot complete a Twitter purchase agreement before 2025. Because, Mask has agreements with other major shareholders, such as Twitter financial adviser Morgan Stanley and founder Jack Dorsey, to buy the company.
The Pension Fund says Musk owns 9.6 percent of the shares on Twitter. As a result of his contract with these two shareholders, he is now the effective ‘owner’ of more than 15 per cent of the company’s shares. According to the law, the process of concluding the contract will be delayed by three years until the investors support the two-thirds of the shares that are not owned by Mask. Morgan Stanley owns 7.6 percent of Twitter and Dorsey owns 2.4 percent of Twitter shares.
Twitter and its board of directors, including Dorsey, chief executive officer (CEO) Parag Agarwal, were also named in the case.
Twitter declined to comment. Musk’s lawyers and Florida Fund did not immediately respond to a request for comment.
In addition to being the CEO of Tesla Inc., the world’s richest man, he also heads The Boring Company and SpaceX. A source close to the matter said that he could become the CEO of Twitter if he gets ownership.
At a recent meeting, the company’s board of directors made the final decision to sell Twitter to Elon Musk. They decided to sell the company for হাজার 4.4 billion. However, the decision to sell Twitter to Musk has raised concerns among investors about the company’s future.
The news that Mask is going to buy Twitter also raises questions about the future of Parag Agarwal, the Indian CEO of the popular social media. Pollen took that responsibility last November.
