The Florida Pension Fund filed a lawsuit against Elon Musk and Twitter on Friday. The lawsuit was filed in Delaware Chancery Court. Twitter and its board of directors, including Dorsey, chief executive officer (CEO) Parag Agarwal, were also named in the case.
The Orlando Police Pension Fund lawsuit states that under Delaware law, Mask cannot complete a Twitter purchase agreement before 2025. Because, Mask has agreements with other major shareholders, such as Morgan Stanley, Twitter’s financial adviser, and Jack Dorsey, the founder, to buy the company.
The Pension Fund says Musk owns 9.6 percent of the shares on Twitter. As a result of his contract with these two shareholders, he is now the effective ‘owner’ of more than 15 percent of the company’s shares. According to the law, the process of concluding the contract will be delayed by three years until the investors support the two-thirds of the shares that are not owned by Mask. Morgan Stanley owns 7.8 percent and Dorsey owns 2.4 percent of Twitter.