Elon Musk to Face Questioning in Suit Over Twitter Buyout Flip-Flop
Musk is set to be questioned under oath about his 2022 acquisition of Twitter Inc. in an investor lawsuit alleging that his on-again off-again move to purchase the social media platform was a ruse to lower its stock price. The case, Pampena v. Musk, involves claims by investors that Musk's statements gave an impression materially different from the state of affairs that existed, ultimately resulting in significant losses for Twitter shareholders. Musk completed the $44 billion buyout after facing multiple court challenges and rebranding the company as X Corp.
- This questioning could provide a unique insight into the extent to which corporate leaders use ambiguity as a strategy to manipulate investors and distort market values.
- How will this case set a precedent for future regulatory actions against CEOs who engage in high-stakes gamesmanship with their companies' stock prices?