Posts Tagged: sues

Florida pension fund sues Elon Musk over Twitter deal

Elon Musk's $ 44 billion buyout of Twitter is facing its first legal challenge. A Florida pension fund is suing Musk and Twitter, arguing that the deal can't legally close until 2025 due to the billionaire's stake in the platform. The proposed class-action lawsuit — filed today by the Orlando Police Pension Fund in the Delaware Chancery court— also declares that Twitter’s board of directors breached its fiduciary duties by allowing the deal to go through. In addition to Musk and Twitter, the lawsuit also named former Twitter CEO Jack Dorsey, current Twitter CEO Parag Agrawal and the company’s board as defendants.

In a message to Engadget, Tulane Law School’s Professor Ann M. Lipton says the lawsuit raises "some very novel issues" under Delaware corporate law. Under a law known as Section 203, shareholders who own more than 15 percent of the company can’t enter a merger without two-thirds of the remaining shares granting approval. Without this approval, the merger can’t be finalized for another three years.

The fund’s lawyers state that Musk initially owned roughly 10 percent of Twitter’s shares, which would seemingly not make Section 203 applicable. But, the fund argues, Musk formed a pact with Morgan Stanley (which owns 8.8 percent of shares) and former CEO Jack Dorsey (who has 2.4 percent) to advance the deal. The combined stake of these parties allegedly makes Musk and his allies in the takeover deal an "interested shareholder" under Section 203 — which, if the court agrees with the underlying reasoning presented in the case, means the merger must either be delayed or get approval shareholders representing at least two-thirds of the company's ownership. 

“Section 203 is not often litigated, and so the issue of whether Musk's relationship with these parties actually counts for statutory purposes is an unsettled question and it will be interesting to watch how it unfolds,” wrote Lipton.

More details of Musk’s highly complex $ 44 billion buyout of Twitter have been made public since the social media platform accepted the billionaire’s offer last month. The New York Times reported that Musk promised investors returns of nearly five to ten times their investments if the deal went through. Parts of the deal are being scrutinized, including its reliance on foreign investors and whether Musk bought shares in the company specifically to influence its leadership. But antitrust experts say the merger is unlikely to be blocked by the FTC. The agency will decide in the next month whether to quickly approve the merger or launch a lengthier investigation.

Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics

Waymo sues to keep autonomous vehicle emergency protocols secret

Waymo has sued the California Department of Motor Vehicles. In a case first reported by The Los Angeles Times, the Alphabet subsidiary filed a complaint with the Sacramento County Superior Court on January 21st to prevent the agency from disclosing what it believes to be trade secrets.

At the center of the lawsuit is a public records request an unidentified party made to obtain Waymo’s driverless deployment application. Before sharing the requested documents, the DMV allowed the company to redact any sections it believed would reveal its trade secrets, including questions that were asked by the agency. When the DMV eventually forwarded the package to the requester, that individual or group challenged the redactions. The agency then contacted Waymo and invited the company to sue it to resolve the matter.

Some of the information Waymo wants to prevent from entering the public domain include details on how it plans to handle emergencies involving its autonomous vehicles. Another redacted section details the abilities of its Driver software to handle San Francisco’s tricky one-way streets and hills. The company began offering taxi service to a limited number of customers in San Francisco in August. Those vehicles operate with a backup human driver.

The company contends it has publicly shared almost all of the information contained in its application with the DMV. According to Waymo, the redactions involve technical details that touch on how it achieves the safety performance it has detailed in other public venues. Waymo claims that information could give a competitor an edge on it. The suit's purpose here is to either forestall or completely prevent the disclosure of the requested information. As TheLos Angeles Times notes, resolution for these types of cases can take years.

“Every autonomous vehicle company has an obligation to demonstrate the safety of its technology, which is why we’ve transparently and consistently shared data on our safety readiness with the public,” a spokesperson for Waymo told Engadget. “We will continue to work with the DMV to determine what is appropriate for us to share publicly and hope to find a resolution soon.”

The DMV declined to comment on the case, but said it's currently reviewing the complaint. 

Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics

Sonos sues Google for infringing on five more speaker patents

Just one day before Google's Pixel 5 reveal, Sonos has filed a new lawsuit against the search giant, alleging it has infringed five more patents. The patents cover technologies that form the basis of some of Sonos' best-known features, including its…
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Steve Wozniak sues Google for not acting on YouTube Bitcoin scams

Steve Wozniak has filed a lawsuit against YouTube, saying the site has repeatedly ignored his requests to take down phony bitcoin giveaways that use his name. He compared YouTube’s actions to Twitter, which quickly removed similar scams after Wozniak…
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Huawei sues Verizon after patent talks break down

Huawei and Verizon's not-very-public feud has escalated into courtroom warfare as the telecoms company files lawsuits across Texas. Huawei is alleging that Verizon is infringing on its networking patents without paying the proper fees, and it wants "…
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Washington, DC sues DoorDash for allegedly misleading users about tips

DoorDash's change in tipping policy has come too late to avoid legal repercussions. The District of Columbia Attorney General has sued DoorDash over claims it not only stiffed couriers (aka Dashers) through its tipping practices, but misled customer…
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News anchor sues Facebook, Reddit after creepy photo appears in ads

Internet giants are about to face another test of their liability for the content they host. The Verge has learned that Fox 29 News anchor Karen Hepp filed a lawsuit against Facebook, Giphy, Imgur, Reddit and porn outlet XNXX for allegedly violating…
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Woody Allen sues Amazon for backing out of film deals

Woody Allen filed a $ 68 million lawsuit against Amazon Studios today. The suit, filed with the Southern District Court of New York, claims Amazon backed out of a multi-film agreement with the controversial director over what Allen calls a "25-year-ol…
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Bumble sues Tinder’s owners for stealing company secrets

Bumble isn't done swiping left on Tinder's parent company Match Group. After publishing an open letter excoriating Match, the women-focused dating app has filed a lawsuit against Tinder's owner, accusing it of stealing trade secrets, among other thin…
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‘Fortnite’ studio Epic Games sues two alleged cheaters

Earlier this week, Fortnite publisher Epic Games filed a civil suit against two people who were allegedly cheating while playing the game online. They were associated with subscription-based website Addicted Cheats and used its services to hunt down…
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California resident sues Apple over absence of lock-out function while driving

Texting while driving is a problem that a California resident believes Apple can minimize, but will not do, with a lock-out mechanism for the iPhone. This belief is at the center of a lawsuit against the company.

The post California resident sues Apple over absence of lock-out function while driving appeared first on Digital Trends.

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Run-DMC sues Amazon, Walmart over online counterfeits

It's not just tech giants like Apple that are taking online stores to task for allowing counterfeit goods on their virtual shelves. Run-DMC is suing Amazon, Walmart (including Jet.com) and partners for selling bogus shirts, hats and other goods that…
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Nokia sues Apple over a slew of patent infringements

Nokia announced today that it has sued Apple for patent infringement in Germany and the US. According to the suit, Apple did agree to a license to a few Nokia patents in 2011, but has declined offers since then. "Through our sustained investment in r…
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Airbnb sues San Francisco over new short-term rental rules

Short-term rental service Airbnb is suing the city of San Francisco over a recently passed amendment to a rental law. The new law is scheduled to go into effect sometime next month, with the lawsuit hoping to block it.

The post Airbnb sues San Francisco over new short-term rental rules appeared first on Digital Trends.

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A consumer group sues Samsung for not updating Android on 82 percent of its phones

Samsung has done a lot to improve its software updates over the past few years, but a Dutch consumer group is still unhappy with the lack of timely updates, and has sued the South Korean electronics giant.

The post A consumer group sues Samsung for not updating Android on 82 percent of its phones appeared first on Digital Trends.

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