A Florida pension fund has sued Tesla CEO Elon Musk and Twitter Inc. in a bid to halt the self-avowed “free speech absolutist” from finalizing his $44 billion takeover bid of the social media platform.
In the proposed class-action lawsuit, brought by the Orlando Police Pension Fund and filed in Delaware Chancery Court, the plaintiffs claim that Musk cannot legally finalize his takeover until at least 2025 unless holders of two-thirds of shares not owned by him sign off on the deal.
The complaint claims that Delaware law prohibits a quick takeover because Musk has agreements with other big Twitter shareholders to support the buyout, including Twitter founder Jack Dorsey and Musk’s financial adviser Morgan Stanley. Dorsey owns 2.4 percent of Twitter shares while Morgan Stanley owns around 8.8 percent.
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