In a stunning example of corporate filth, Elon Musk, who bought Twitter for about $44 Billion, is now finding evidence the previous Executives may have engaged in literal fraud; not only against Musk to boost the purchase price, but also against the Court wherein they filed suit to force him to buy the company!
This morning, Musk tweeted the following, apparently containing excerpts from internal Twitter Executive email/direct messages:
Wachtell & Twitter board deliberately hid this evidence from the court. Stay tuned, more to come … pic.twitter.com/CifaNvtRtt— Elon Musk (@elonmusk) October 31, 2022
At first glance, casual observers are saying this certainly explains why twitter’s senior counsel and CEO were fired — with cause.
They get No stock options, no bonuses, no golden parachutes.
If what Musk Tweeted holds true, he can go after billions from the board and executive committee; and perhaps the advertisers have some roll in the deception as well.
For instance, if the number of claimed users by Twitter was deliberately fraudulent, the former executives and Board of Directors might be Liable for the difference proportional to the stock price.
If 100 million users sold for $40 billion… but they had only 25 million users, they owe musk $30 billion plus court costs.
Oh this is going to get good. And there are clear injured parties, clear damage, absolute standing, and governmental oversight in the process. It wasn’t a private sale in a closed room. The Securities and Exchange Commission (SEC) was involved. This could be viewed by authorities as stock fraud by former Twitter execs. People could go to prison for this.