Elon Musk has been sued by Twitter shareholders for delaying the announcement of his stake in the company.
On April 5, Twitter announced that Tesla’s CEO would be joining the board of directors, but then turned around and decided not to. According to Reuters, shareholders say the billionaire took too long to disclose the 9.2% stake in the company, which is why they missed the share price increase.
In a class action lawsuit filed today in the Manhattan Federal Court, shareholders claim that Musk did so “Materially False and Misleading Statements and Omissions” did not publicly acknowledge his involvement in the company until March 24, the statutory termination date. US securities law requires investors to declare within 10 days that they have acquired 5% or more of the company.
Shares of San Francisco-based Twitter rose 27% to $ 49.97 on April 4 after Musk announced his stake in what investors saw as a man’s vote of confidence in the company. rich in the world Mark Russell, a former Twitter shareholder leading the group’s rally, said Musk bought the shares at lower prices, while other shareholders sold their shares at an even lower price.
The lawsuit seeks unspecified compensation and punitive damages. Musk’s attorney did not comment.
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
