Elon Musk and Twitter Inc have been sued by a Florida pension fund seeking to dissuade the CEOs of Telsa and SpaceX from completing a $44 billion takeover of the social media icon.
In a class-action lawsuit filed in the Delaware Chancery court, the Orlando Police Pension Fund stated that under Delaware law, Musk can't fully control Twitter until 2025 unless two-thirds of the shareholders he doesn't own agree-buy-twitter.
Musk has agreements with other major Twitter shareholders, including his financial adviser Morgan Stanley and Twitter founder Jack Dorsey, to support the buyout. Little information Morgan Stanley owns about 8.8% of Twitter shares and Dorsey owns 2.4%.
In addition to Musk, Twitter and its board, including CEO Parag Agrawal, have also been sued. Twitter declined to comment on the report, as did Musk's attorneys and the Florida Pension Fund when contacted by Reuters.
In the lawsuit alleging that Twitter's directors breached their fiduciary obligations, reimbursed legal fees and damages. It is not explained how the shareholders will suffer losses if the takeover is completed according to schedule.
Earlier on Thursday, Musk listed a group of well-known investors who were ready to provide $7.14 billion for the purchase of Twitter. It has the name of Oracle co-founder Larry Ellison and Sequoia Capital on it.
Larry Ellison, who is a board member at Tesla and a close friend of Musk, has committed to providing $1 billion for the funding. Besides Larry Ellison, there is the name of Prince Alwaleed bin Talal.
The Saudi Arabian prince agreed to put his $1.89 billion stake in an investment deal. Other investors interested in funding Twitter include crypto firm Binance, New York-based real estate tycoon Steven Witkoff and DFJ Growth IV Partners are on the investor list.