A judge has rejected a class action lawsuit accusing Elon Musk of misleading shareholders of Twitter multiple times over the past year during his acquisition of the social media platform for $44 billion. In a ruling issued yesterday, Monday, U.S. District Court Judge Charles Breyer in San Francisco stated that "William Hershianak, the plaintiff acting on behalf of a group of shareholders, lacks legal standing to file the lawsuit because he challenged errors related to Musk's acquisition of the company, not the integrity of the acquisition process itself."
Breyer noted, "Hershianak did not clarify the harm resulting from Musk's delayed disclosure about purchasing a 9.2% stake in Twitter." The judge also found no evidence that "Musk assisted two friends on Twitter's board, Jack Dorsey, the co-founder, and Egon Durban, a partner at investment firm Silver Lake, in breaching their fiduciary duties by favoring their interests and Musk's." Hershianak's attorneys have not yet responded to requests for comment.
