Billionaire tech entrepreneur Elon Musk and social media firm Twitter Inc were sued on Friday by a Florida pension fund seeking to stop Musk from completing the $44 billion takeover of the social media firm before 2025, Reuters reported.
The Orlando Police Pension Fund claimed in a proposed class action filed in Delaware Chancery Court that Delaware law prohibited “a quick merger” because Musk had made agreements with other major Twitter shareholders, including his financial adviser Morgan Stanley and Twitter founder Jack Dorsey, to support the buyout.
The fund reportedly said those agreements made Musk, who owns 9.6 percent of Twitter, the effective “owner” of more than 15 percent of the company’s shares, requiring a three-year delay in the merger unless two-thirds of shares not “owned” by him granted approval, the report added.
Morgan Stanley holds 8.8% of Twitter’s stock, while Dorsey owns 2.4 percent. According to the report, it was not immediately evident from the complaint how Twitter stockholders would be affected without a three-year wait.
Twitter and its board of directors, which includes Dorsey and CEO Parag Agrawal, were also listed as defendants.
The case is Orlando Police Pension Fund v. Twitter Inc, No. 2022-0396, Delaware Chancery Court.
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