Latest News by Industry
• Shareholder wants internal files about bot numbers on platform
• Musk threatening to terminate $44 billion buyout deal over bot issue
A Twitter Inc (NYSE: TWTR) shareholder filed a lawsuit against the social media company seeking records related to discussions between its directors and executives about problems with so-called bot accounts.
John Solak, who owns five Twitter shares, sued Twitter in Delaware Chancery Court on Tuesday, saying, “Stockholder’s purpose in seeking these books and records is to investigate the possibility of board-level breaches” of legal duties to investors over directors’ failure to oversee public disclosures of the bot numbers properly.
Elon Musk on Monday warned that he might terminate the $44 billion offer to acquire Twitter if the social media company failed to provide data on spam and fake accounts.
Musk accused the social media platform of “resisting and thwarting” his right to information about fake accounts on the platform, calling it a “clear material breach” of the terms of their merger agreement.
In his suit, Solak also wants files about discussions between Twitter directors and executives on whether Musk damaged the company by disparaging some of its employees and the firm’s attempts to “mitigate” the harm.
The case is Solak v. Twitter, 2022-0491, filed in Delaware Chancery Court.
Picture Credits: Bloomberg
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