The Orland Police Pension Fund filed a lawsuit in Delaware Chancery Court to stop the shareholder buyout of Twitter by Elon Musk.
The Pension Fund claims there are two conflicts of interest. One between Jack Dorsey and Elon Musk, and one between Elon Musk and Morgan Stanley Bank. It also claims Twitter’s Board of Directors did not fulfill their “fiduciary duty.” The full text of the lawsuit is not yet available online.
The Orlando Police Pension requests an injunction to delay the buyout for three years “unless a two-thirds majority of shareholders vote to accept it.”
Many financial experts believe that Musk’s price of $54.20 is generous, and a two-thirds majority of shareholders would eagerly vote in favor of it. The Saudi Prince Alwaleed bin Talal, who initially claimed the buyout price was too low, is now an investor in Musk’s buyout. Elon Musk, Alwaleed bin Talal, Jack Dorsey, and Morgan Stanley jointly hold about 25% of the shares. Only a 54% majority of the rest of the shareholders would be needed to reach a two-thirds majority.
The Florida State Pension Fund is a significant investor in Twitter stock. Florida Governor Ron DeSantis says that the Florida State Pension Fund would gain over $15 million on their Twitter investment if Musk completes his buyout.
Many are wondering if the lawsuit is politically motivated.
Orlando Police Pension Fund Board includes five people. The mayor appoints two, two are elected police officers, and the trustees appoint one.