Twitter Shareholders File Class Action Lawsuit Demanding Elon Musk's Twitter Acquisition Deal Be Delayed by 3 Years

Elon Musk [Photo by AFP Yonhap News]

[Asia Economy Reporter Byunghee Park] Twitter shareholders have filed a class-action lawsuit requesting Elon Musk, Tesla CEO, to delay the Twitter acquisition deal by three years.

On the 6th (local time), the Orlando Police Pension Fund in Florida filed a class-action lawsuit in a Delaware local court, arguing that Musk completing the Twitter acquisition deal by 2025 violates Delaware corporate law, according to major foreign media reports on the same day.

The Delaware corporate law cited by the Orlando Police Pension Fund was enacted in the 1980s and includes provisions allowing objections to rapid merger procedures to protect shareholder voting rights.

Based on this law, the Orlando Pension Fund claimed that Musk, who currently holds a 9% stake in Twitter, is merely a "interested shareholder" with restrictive conditions in the Twitter acquisition.

Unless two-thirds of the Twitter voting shares not secured by Musk agree to this acquisition, he must wait an additional three years to own Twitter.

However, the pension fund did not specify what damages other shareholders might suffer if Musk's Twitter acquisition is completed within this year.

Charles Anson, former director of the Delaware University Corporate Governance Center, said that proving the status of an interested shareholder with acquisition restrictions is a difficult task, and he expects this lawsuit will not be a major obstacle to Musk's Twitter acquisition.

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