A lawsuit brought by Elon Musk over his Twitter takeover, which was described as a ‘disjointed laundry’ list of complaints by his lawyers, has been dismissed.

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• A California judge dismissed the lawsuit that accused Elon Musk of defrauding Twitter shareholders.
• Musk claimed to have saved millions of dollars by revealing his Twitter stake late.
• The judge ruled that the claims were not valid because they did not challenge the fairness or the agreement.

On Monday, a judge dismissed a lawsuit that claimed Elon Musk’s Twitter takeover defrauded shareholders.

William Heresniak made the complaint in May last year, one month after Twitter had accepted Musk's first $44 billion offer.

Insider reviewed the suit and it cites an article from The Wall Street Journal that estimated Musk saved $143,000,000 by disclosing late his 9.2% stake.

It argued that Musk had helped his friends, including Jack Dorsey the cofounder, to prioritize their own interest over shareholders.

Heresniak claimed that Musk tried to pull out of the deal, which was finalized just before the trial date after a long back and forth. This was because the Tesla stock used to fund the purchase was losing value.

Reuters reported that U.S. district judge Charles Breyer dismissed the case, because Heresniak could not prove he suffered harm from Musk's late disclosure or that Musk assisted board members who were friendly to him.

Reuters reports that Musk's attorneys called the allegations "a disjointed list of – sometimes irrelevant – grievances" against Elon Musk in a court filing on March 3.

Breyer, on Monday, sided with the plaintiffs, saying that he lacked standing to challenge the fairness, but only the "wrongs related to the merger."

The judge, for example, wrote: "Though Heresniak claims that Musk was enriched through the acquisition of Twitter stock at low prices, he doesn't allege that Heresniak has lost money."

Employee stock grants, which valued the company at $20 billion, show that since Musk purchased Twitter in October last year, its value has dropped by more than half.

One of the lawsuits filed against the world's second richest person, involving Twitter, was filed last week. It contained a number allegations, such as that he had illegal locks installed in bedrooms at Twitter's headquarters.

Twitter was contacted by Insider for a comment. Twitter responded to Insider's inquiry with an automated response.

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By: psyme@insider.com (Pete Syme)
Title: A lawsuit against Elon Musk’s Twitter takeover — which his lawyers called ‘a disjointed laundry list’ of grievances — has been dismissed
Sourced From: www.businessinsider.com/lawsuit-against-elon-musks-twitter-takeover-dismissed-by-judge-2023-5
Published Date: Tue, 23 May 2023 10:32:10 +0000

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