Sat 07 May 2022:
A Florida pension fund has filed a lawsuit against Tesla CEO Elon Musk to block the billionaire from buying Twitter.
Musk is violating Delaware law, according to the pension fund, because he has additional obligations to Tesla’s stockholders.
However, Musk has reached deals with Twitter founder Jack Dorsey and Morgan Stanley, his financial advisor, to support the takeover. They control 2.4 percent and 8.8% of Twitter, respectively.
The pension fund has declared that it must be postponed for three years unless he receives consent from two-thirds of other shareholders’ shares.
Florida’s governor Ron DeSantis had said earlier this week that if Musk completes his buyout, the state’s pension fund will make a $15m to $20m profit.
In another lawsuit, a Tesla investor will argue the CEO’s $56 billion pay package from the company is a waste of money that failed to secure his full-time services.
According to one of the shareholder’s attorneys, the deal for Twitter Inc and its potential to distract Musk from Tesla will play an important part of the trial in October.
In 2018, Musk had created the 10-year package without requiring the celebrity CEO to devote himself to the electric vehicle maker.
“Look at most CEO contracts. The first line, it says ‘you’re going to be a full-time CEO and devote substantially full time to the business and affairs of the company.’ That’s standard,” said Greg Varallo of Bernstein Litowitz Berger & Grossmann, the firm that is leading the case against the pay deal.
SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES
___________________________________________________________________________________________________________________________________________
FOLLOW INDEPENDENT PRESS:
TWITTER (CLICK HERE)
https://twitter.com/IpIndependent
FACEBOOK (CLICK HERE)
https://web.facebook.com/ipindependent
Think your friends would be interested? Share this story!
