Elon Musk is facing a shareholder lawsuit over his failure to reveal his investment in Twitter until 11 days after a deadline set by federal law.
Musk started buying Twitter stock in January and acquired more than 5 percent of all shares by March 14, the lawsuit said. Under US law, “Musk was required to file a Schedule 13 with the SEC within 10 days of passing the 5 percent ownership threshold in Twitter, or March 24, 2022,” said the complaint filed yesterday in US District Court for the Southern District of New York.
Twitter’s stock rose 27 percent on April 4 when Musk revealed his 9.2 percent stake. This means that investors who sold before April 4 missed out on the gains and that Musk was able to keep buying shares at artificially low prices, the class-action complaint said:
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