Elon Musk and Twitter are back in the spotlight after a Florida pension fund filed a lawsuit on Friday to restrict the Tesla CEO’s $44 billion takeover of the microblogging site.
The Orlando Police Pension Fund filed a complaint in Delaware Chancery Court, claiming that under Delaware law, Musk cannot entirely take over the company until at least 2025 unless two-thirds of the company’s shares are owned by Musk.
Musk became an “interesting investor” when he acquired over 9 per cent of the Twitter share, according to the complaint, forcing the delay.
According to CNN, the whole Twitter board of directors is a defendant in the case, including CEO Parag Agrawal. The current application aims to push the merger’s completion date back to at least 2025.
The US Federal Trade Commission (FTC) is investigating SpaceX’s creator for antitrust violations, which might postpone the deal’s completion.
Musk’s initial purchase of the 9 per cent interest is being investigated by the FTC, which is questioning whether he fulfilled an antitrust filing obligation when the stocks were first purchased in April.
The Republican Party strongly supports the Twitter agreement, hoping that conservatives banned from the site, such as former President Donald J Trump, will be allowed to return. Neither Twitter nor Musk has responded to the recent news.