Twitter and Elon Musk are making headlines again after being sued on Friday by a Florida pension fund that seeks to stop the Tesla CEO’s $44 billion takeover of the micro-blogging platform.
The complaint was filed by the Orlando Police Pension Fund in the Delaware Chancery Court, which stated that under Delaware law, Musk cannot completely take over the company until at least 2025 unless shareholders with two-thirds shares owned by Musk are approved.
The complaint further clarifies that Musk became an ‘interesting stakeholder’ when he purchased over 9% of the Twitter stake, thus, requiring the delay.
CNN reports that the entire Twitter Board including CEO Parag Agrawal is a defendant in the case. The latest filing hopes to delay the merger’s closing by at least 2025.
The SpaceX founder is also facing an antitrust review by the US Federal Trade Commission (FTC), which would also delay the closing of the deal.
FTC is investigating Musk’s initial purchase of the 9% stake, and questions if he complied with an antitrust reporting requirement when the shares were first acquired back in April.
The Twitter deal is highly supported by the Republican party, who hope conservatives banned from the website such as former President Donald J Trump will be allowed to return.
Both Twitter and Musk have yet to comment on the latest developments.
