Musk sued by Twitter investor

By Scoop
April 15, 2022 · less than 3 min read

After not revealing the size of his stake in the social media company within the 10-day disclosure period, Musk is facing a lawsuit.  

The saga continues 

The richest man in the world becoming the largest shareholder in one of the internet’s most widely used social platforms. It was always going to be a rollercoaster, right?  

So, what’s the latest in the Musk-Twitter saga? Elon is being sued. After failing to disclose his 9.2% stake in the company, worth almost $3bn, within the proper time to the US Securities and Exchange Commission, he’s being accused of playing the system. It’s alleged that in the time between passing the 5% threshold (at which point you’re required to disclose share purchases in 10 days) and actual publicly reporting, Musk was able to buy up additional shares at a deflated price.  

More money, more problems 

According to experts, Musk’s declaration delay may have netted him around $156 million, with Twitter shares rising by up to 27% once his purchase was made public. So, there are a whole bunch of investors who sold stock during that time and lost out big, when they could have made mega profits had Musk made his announcement earlier. 

With controversy never far away from Musk, Twitter investors may well be glad of his recent U-turn in deciding not to join the Twitter board. Although who knows what headlines lie around the corner? Nothing is a surprise anymore.  

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