Florida Pension Fund Throws a Legal Throw‑down at Elon Musk’s Twitter Takeover
What’s the Fuss?
On Friday, May 6, the Orlando Police Pension Fund filed a class action in Delaware’s Chancery Court to put a stop to Elon Musk’s $44 billion (S$61 billion) plan to grab Twitter before 2025. They claim the proposed merger is too speedy, violating Delaware law because Musk has “back‑ups” from other big shareholders.
Who’s “Backing” Musk?
- Morgan Stanley – 8.8 % of Twitter’s shares.
- Jack Dorsey – 2.4 % of Twitter’s shares.
- Elon himself – 9.6 % of Twitter, but his clout is argued to be equivalent to owning more than 15 % of the company.
Why the Delay?
The fund asserts that, under the agreements Musk has with these allies, the deal can’t close until:
- Three years have passed, and
- At least two‑thirds of the shares not “owned” by Musk give the green light.
Who’s Still in the Mix?
Twitter’s board, including Jack Dorsey and CEO Parag Agrawal, are also named defendants in the lawsuit. The company itself declined to weigh in.
Lawyer Tangles
Both Musk’s legal team and the pension fund’s lawyers didn’t rush to comment, but the suit also accuses Twitter directors of breaching fiduciary duties, demanding a reimbursement of legal costs. The exact harm to shareholders if the deal goes ahead isn’t spelled out—just a vague “it might hurt” note.
Money Moving—Very Fast
Musk is aiming to finish the buy‑out this year in what could be one of the globe’s biggest leveraged buyouts. He’s already raised about $7 billion—$5 billion from sovereign wealth funds and the rest from Silicon Valley friends. The new investors seem to share Musk’s “free‑speech absolutist” vision for Twitter, which could shift how the San Francisco‑based platform manages content.
Florida’s Own Stakes
The pension fund invests in Twitter too, and Governor Ron DeSantis hinted that a successful takeover could bring the state a tidy $15 million to $20 million in profit.
Stock Market Reaction
When trading kicked off, Twitter shares dipped 60 ¢, landing at $49.76.
Case Details
Orlando Police Pension Fund v. Twitter Inc. et al, Delaware Chancery Court, No. 2022‑0396.
