The CEO of Tesla and SpaceX, Elon Musk, was sued by Twitter investors for “unlawful conduct” claiming he manipulated the company’s stock price downward by sowing doubt about his bid to buy the social media company.
Twitter, which is based in California’s Bay Area, was also named as a defendant in the suit, which argued that the company had an obligation to investigate the Tesla CEO’s pre-bid conduct.
The class-action lawsuit (pdf), filed on May 26 in the U.S. District Court for the Northern District of California, accused Musk of allegedly attempting to drive down Twitter’s stock value in order to buy it for a cheaper price, or as a possible attempt to step away from the acquisition deal….