Lawsuit Against Elon Musk’s Twitter Takeover Dismissed by Judge
In a recent legal development, a lawsuit challenging Elon Musk’s Twitter takeover has been dismissed by a U.S. District Judge, who ruled that the plaintiff lacked standing to bring the case forward. The lawsuit, filed by William Heresniak last May, alleged that Musk’s acquisition of Twitter cheated shareholders and prioritized the interests of friendly board members over shareholders.
Heresniak’s complaint, citing a Wall Street Journal article, claimed that Musk saved $143 million by belatedly disclosing his 9.2% stake in Twitter. Additionally, it argued that Musk assisted board members, including co-founder Jack Dorsey, in prioritizing their interests.
However, U.S. District Judge Charles Breyer dismissed the case, stating that Heresniak failed to demonstrate that he was harmed by Musk’s late disclosure or that Musk assisted friendly board members. The judge emphasized that Heresniak only challenged “wrongs associated with the merger” and did not contest the fairness of the takeover itself.
Despite Musk’s acquisition of Twitter last October, the company’s value has declined significantly, with employee stock grants valuing it at $20 billion, down by more than half. This legal victory comes amidst several other lawsuits facing Musk related to Twitter, including allegations of putting lives at risk by installing illegal locks on the company’s headquarters’ bedrooms.
Insider reached out to Twitter for comment, but the company provided an automated response that did not address the inquiry.
As Musk continues to face legal challenges related to his Twitter takeover, the dismissal of this lawsuit marks a significant legal victory for the billionaire entrepreneur, though the broader implications for his ongoing legal battles remain to be seen.
