Why are Twitter shareholders suing Elon Musk?

Twitter shareholders have sued Elon Musk as they alleged that the billionaire violated California corporate laws and also engaged in market manipulation.

Shareholders were seem annoyed over the chaotic acquisition process that is still underway contributing to volatile price swings in the company’s stock price.

Since Musk’s acquisition bid, Twitter’s share price has dropped more than 12 percent, and Tesla’s is down about 28 percent induced by a broad sell-off in tech stocks.

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In one potential violation, Twitter shareholders claim that Musk financially benefited by delaying required disclosures about his stake in Twitter and by temporarily concealing his plan in early April to become a board member at the social network.

Musk also snapped up shares in Twitter, the complaint says, while he knew insider information about the company based on private conversations with board members and executives, including former CEO Jack Dorsey, a longtime friend of Musk’s.

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