Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Have Sold Twitter Stock or Twitter Securities To Contact Him Directly To Discuss Their Options
New York, New York--(Newsfile Corp. - November 21, 2022) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Twitter, Inc. ("Twitter" or the "Company") (NYSE: TWTR) and reminds investors of the December 12, 2022 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Investors who have sold Twitter stock or other Twitter securities between May 13, 2022 and October 4, 2022 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/MUSK.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Musk was not entitled to due diligence under the Merger Agreement and had in fact waived due diligence; (2) Musk was well aware of the problem of bots and spam on Twitter's platform and had vowed to eliminate the bots after the acquired Twitter; (3) there were no legally justifiable reasons for Musk to terminate the Merger; (4) Musk was issuing false statements and unjustified terminations of the Merger in order to drive Twitter's stock price down so that Musk could attempt to negotiate a reduction in the Merger price; (5) there was no MAE; (6) Musk was trying to delay the Merger in the hope that the price of Tesla stock would rebound before he had to sell more of it to fund the Merger price; and (9) as a result, Defendant's public statements were materially false and misleading at all relevant times.
The lawsuit charges that Defendant Elon Musk violated Section 10(b) of the Securities Exchange Act of 1934 by issuing false statements about his purchase of Twitter, Inc., including termination notices that falsely claimed that Twitter had breached terms of the merger agreement and that a Material Adverse Event ("MAE") had occurred. On May 13, 2022, Musk tweeted that the merger was "temporarily on hold." On May 17, 2022, Musk stated that the merger "cannot go forward" and claimed that almost 20% of Twitter accounts were fake. Musk thereafter issued three separate notices terminating the merger between July 8, 2022 and September 9, 2022 which falsely claimed that Twitter had breached terms of the merger agreement by not giving him documents about spam.
The complaint alleges that Musk's statements were false because Musk was not entitled to due diligence and had in fact waived due diligence; Musk was well aware of the problem of bots and spam on Twitter, and there were no legally justifiable reasons for Musk to terminate the Merger.
On October 4, 2022, less than two weeks before he was set to go to trial in Delaware over the merger, Musk stated he would proceed with the Twitter buyout at the original $54.20 price, abandoning his prior positions and capitulating to Twitter. The announcement shocked the stock market and caused Twitter's stock price to increase by 22%. Twitter stock and bondholders who sold their Twitter securities earlier in the year based on Musk's false statements were damaged by selling at prices artificially depressed by Musk's false statements.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Twitter's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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