Elon Musk Sued by Former Twitter Shareholders Over Alleged Late Failure to Disclose Stake in Company

Contact Your Elected Officials
The Epoch Times Header

Elon Musk is being sued by former Twitter shareholders who claim he failed to disclose his stake in the company on time, thus preventing them from profiting when the social media platformโ€™s stocks shot up in price.

The class-action lawsuit was filed in Manhattan federal court by plaintiff and stockholder Marc Bain Rasella, who is suing on behalf of all Twitter shareholders who held stock in the company between March 24 and April 1, 2022.

Tesla CEO Musk acquired a 9.2 percent passive stake in the company earlier this month, making him the social media giantโ€™s biggest individual shareholder.

Shortly after news of the disclosure surfaced, Twitter shares soared, sharply boosting the value of Muskโ€™s stake.

The lawsuit states that Musk began acquiring shares of the social media platform at the start of January and that by March 14, 2022, he had acquired more than a five percent ownership stake in Twitter.

It further states that the businessman was required by the U.S. Securities and Exchange Commission (SEC) to disclose his ownership stake within 10 days after passing the five percent ownership threshold, or by March 24, 2022 โ€” also known as schedule 13 โ€” but that he failed to do until April 4.

โ€œMusk did not file a schedule 13 with the SEC within the required time and instead continued to amass Twitter shares, eventually acquiring a 9.1 percent stake in the company before finally filing a schedule 13 on April 4, 2022,โ€ the lawsuit states.

โ€œWhen Musk finally filed the required schedule 13, thereby revealing his ownership stake in Twitter, the companyโ€™s shares rose from a closing price of $39.31 per share on April 1, 2022, to close at $49.97 per share on April 4, 2022 โ€“ an increase of approximately 27 percent.โ€

Plaintiffs argue that due to Muskโ€™s failure to disclose that he had invested in Twitter by theย March 24 deadline asย required under federal law,ย investors who sold their shares between March 24 and April 4 โ€œmissed the resulting share price increase as the market reacted to Muskโ€™s purchases and were damaged thereby.โ€

Byย Katabella Roberts

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

The Sacred Honor of the 56

Today we're celebrating the sacred honor of the 56 men who signed the Declaration of Independence.

Alligator Alcatraz: A Bold Step Toward Secure Borders

Alligator Alcatraz funded through FEMA, represents a decisive move by the Trump admin to address illegal immigration with efficiency and resolve.

Is America Broke?

Silicon Valley investor and economic commentator Balaji Srinivasan made...

Hungary: Prideโ„ข Cometh Before the Color Revolution

The EU engaged in a diplomatic siege of the Eastern European nation-state of Hungary pressuring it into embrace global trannyism or face wrath of Brussels.

Understanding the Trump/Musk Feud

The passion Trump and Musk exhibit over the OBBB is not contrived or for show. Each is addressing the problem from completely different approaches.

Noem Waives Environmental Restrictions to Fast-Track Water Barriers in Rio Grande

DHS Sec Kristi Noem waived federal environmental laws to fast-track construction of 17 miles of waterborne barriers in the Rio Grande in South Texas.

Federal Officials Warn of โ€˜Lone Wolfโ€™ Terror Threats on July 4, NY Governor Says

NY Gov. Kathy Hochul confirmed that federal officials informed her about a possible terrorist threat ahead of the July 4 Independence Day holiday.

Record 1 in 5 Buyers of New Cars Committing to $1,000-Plus Monthly Payments: Edmunds

The share of new car buyers committing to make monthly payments of $1,000 or more hit an โ€œall-time highโ€ in the second quarter of 2025.

US Economy Adds 147,000 New Jobs, Unemployment Rate Dips to 4.1 Percent in June

The U.S. job market remained strong in June, as labor conditions continued to hold up amid economic uncertainty.

US Keeps Pressure on Chinese Goods Amid Vietnam Trade Deal

Transshippingโ€”rerouting goods through a third country to disguise the origin of the productsโ€”is a focal point of trade negotiations with Asian markets.

White House Report Reveals Top Earners, Staffers Working for No Salary

The Trump admin released its yearly report that shows the salaries for White House staffers, also revealing officials who arenโ€™t accepting salaries at all.

Transportation Secretary Urges Governors to Remove Political Messages From Crosswalks, Intersections

Duffy sent letters to governors, mayor of D.C., and gov of Puerto Rico urging them to remove political messaging from intersections and crosswalks.

Bessent: US, India Near Agreement to Lower Tariffs

The United States and India are โ€œvery closeโ€ to a trade agreement, Treasury Secretary Scott Bessent said on Tuesday.
spot_img

Related Articles