Musk, Twitter sued by Florida pension fund over $44bn takeover | Social Media News

The Orlando Police Pension Fund argues the deal can’t shut earlier than 2025 as a result of Musk was an ‘ shareholder’ within the social networking platform.

Elon Musk’s $44 billion buyout of Twitter Inc. was challenged in a lawsuit by a Florida pension fund that argues the deal can’t shut earlier than 2025 as a result of Musk was an “ shareholder” within the social networking platform.

The Orlando Police Pension Fund filed swimsuit in Delaware Chancery Courtroom on Thursday. In accordance with the grievance, Musk had agreements with different main Twitter shareholders — together with founder Jack Dorsey — to depend on their holdings when providing to take the corporate personal final month. These preparations triggered a Delaware legislation that requires a three-year delay in closing such offers, the fund claims.

Musk’s Twitter acquisition options one of many greatest leveraged buyout offers in historical past. He’s taking personal a 16-year-old social networking platform that has grow to be a hub of public discourse and a flashpoint within the debate over on-line free speech. Musk disclosed Thursday a bunch of buyers have been kicking in additional than $7 billion of fairness in the direction of the deal. They embrace Oracle Corp. billionaire Larry Ellison, venture-capital agency Sequoia Capital and cryptocurrency alternate Binance Holdings Ltd.

A consultant for Musk didn’t instantly return an e-mail in search of touch upon the pension fund’s swimsuit.

Musk, 50, has outlined financing for the deal that features $13 billion in financial institution loans secured by the social-media firm and $12.5 billion backed by a pledge of a few of his $170 billion Tesla Inc. stake. He’s at the moment the world’s richest particular person, with a fortune valued at greater than $249 billion.

The pension fund’s attorneys notice Musk owned about 10% of Twitter’s shares when he made his buyout provide. The additionally say within the grievance that he had an “settlement, association or understanding” with different main Twitter buyers, equivalent to Dorsey and funding financial institution Morgan Stanley. These pacts allowed Musk to depend on their shares and help for the deal, in line with the swimsuit.

Underneath Delaware company legislation, these agreements make Musk an “ shareholder” who has to attend three years to shut the deal or win the help of buyers who management “not less than 66 2/3% of Twitter’s excellent voting inventory” and have been unbiased from the billionaire, the swimsuit mentioned.

The fund is asking a Delaware choose to seek out that Musk meets the take a look at for an “ shareholder” and is topic to the legislation, in line with the grievance.

The case is Orlando Police Pension Fund v. Twitter Inc, No. 2022-0396, Delaware Chancery Courtroom.

(Updates with particulars from swimsuit beginning in fifth paragraph)

US: Walgreens reaches $683m opioid settlement with Florida | Drugs News

Pharmacy chains have more and more been focused for allegedly lax oversight states say spurred excessive charges of habit.

Walgreens Boots Alliance, which owns a string of retail pharmacies, has reached a $683m settlement with Florida to resolve claims it exacerbated an opioid epidemic within the state.

The settlement ends a trial that started final month, after Walgreens determined to not be a part of a mixed $878m settlement within the state with 4 different healthcare firms.

Up to now, Florida has recovered greater than $3bn in opioid litigation in opposition to drugmakers, distributors and pharmacies, in response to Florida Lawyer Normal Ashley Moody.

It can spend a lot of the cash on efforts to mitigate the opioid disaster within the state.

“I’m glad that we have now been capable of finish this monumental litigation and transfer previous the courtroom,” Moody mentioned at a Thursday press convention.

The latest settlement consists of $620m to be paid to Florida over 18 years, plus $63m for authorized charges.

Walgreens didn’t admit wrongdoing as a part of the settlement, which stems from allegations the corporate performed down the dangers of habit and overdoses, and have been lax in monitoring the place capsules ended up.

The case hinged on accusations that as Walgreens disbursed greater than 4.3 billion opioid capsules in Florida from Could 2006 to June 2021, greater than half of the prescriptions contained a number of simply recognised purple flags for abuse, fraud and habit that the corporate ought to have observed and acted upon.

Previous to settling, Walgreens had argued it needs to be immune from being sued based mostly on a $3,000 settlement it reached with Florida in 2012.

Florida had referred to as Walgreens’ place “absurd”, in response to courtroom transcripts, saying the 2012 settlement addressed solely a single record-keeping violation.

CVS Well being Corp beforehand agreed to settle with Florida for $484m, whereas Teva Pharmaceutical Industries Ltd, Abbvie Inc’s Allergan unit and Endo Worldwide Plc agreed to pay a respective $194.8m, $134.2m and $65m.

All denied wrongdoing.

The nationwide opioid disaster has led to greater than 500,000 overdose deaths within the final twenty years, in response to the US Facilities for Illness Management and Prevention.

Greater than 3,300 lawsuits have been filed in opposition to these allegedly chargeable for the disaster.

Whereas many initially focused drugmakers and distributors, states have additionally more and more focused pharmacies.

In November of final yr, a jury in a federal trial in Ohio discovered Walmart, CVS Well being Corp, and Walgreens Boots Alliance responsible of spurring the disaster by failing to correctly monitor opioid prescriptions.

On Tuesday Washington state reached a $518m settlement with opioid distributors McKesson Corp, AmerisourceBergen Corp and Cardinal Well being, ending a months-long trial in these firms’ alleged position within the opioid disaster.