A Twitter investor is suing Elon Musk and the social media platform for mishandling the billionaire’s $44 billion (£34.9 billion) takeover bid.
In the case, he is accused of violating California corporate laws in a variety of ways.
It accuses Musk of “wrongful conduct” because his “false statements and market manipulation have created ‘chaos’ at Twitter’s San Francisco headquarters.”
Twitter shares are about 27% lower than Mr Musk’s offer price of $54.20.
Investor William Heresniak filed the proposed class action lawsuit this week in the US District Court for the Northern District of California, claiming to be acting “on behalf of himself and all others similarly situated.”
According to the lawsuit, Mr Musk benefited financially by delaying the disclosure of his significant stake in Twitter and his intention to join the company’s board of directors.
It also claimed that several tweets by Mr Musk, a frequent Twitter user with over 95 million followers, were “misleading.”
It included a post in which Mr Musk stated that his takeover bid for the social media company had been halted due to his concerns about the number of fake accounts on the platform.