Elon Musk has only been Twitter’s largest partner for a few weeks, but he is already facing a class action lawsuit over his investment. A Twitter partner A class action lawsuit has been filed against Musk for his 11-day delay in officially disclosing his investment to the SEC on Twitter.
Under the securities law, Musk had to file with the SEC by March 24 – 10 days after his stake in Twitter rose 5 percent – but he did not do so until April 4. That delay was not particularly noticeable, but it may have impressed him greatly . According to the lawsuit, those gains came at the expense of other shareholders, who were similarly unable to make a profit.
“Investors who sold shares in Twitter shares between March 24 and 2022 were required to disclose Musk’s Twitter rights, and before the actual April 4, 2022 release, the market reacted to Musk’s purchases, avoiding stock price increases. It was damaged, ”the lawsuit said.
According to the shareholder who brought the lawsuit, he and other investors sold the shares at “artificially inflated” prices as a result of Muskin’s actions. The lawsuit alleges that Musk “actually made false and misleading statements and omissions” by failing to disclose to investors that he had bought a 5% ownership stake in Twitter.
The lawsuit comes after a tumultuous few days for Twitter and Musk. Tesla CEO and the mentioned Twitter troll initially agreed Twitter’s board of directors, much Of some staff. But the decision was abruptly reversed following several days of bizarre tweets from Musk, who voted for his Twitter followers to change the company’s name, and speculated that the service was “dying”.
In An email To employees, Twitter CEO Barack Agarwal said Musk, as a team member, “would have been the company’s confidant, where he, like all board members, would work for the benefit of the company and our partners.” He further added that he believes it is “best” that Musk will not take over the post in the end.
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