(FeaturedNews.com) – Elon Musk shocked the world by purchasing 9.2% of Twitter’s stock, making him the company’s largest stockholder. Now, he’s facing some backlash from shareholders who are unhappy with how he went about securing ownership. They say his underhanded moves violated securities laws, and they want him to pay for it.
.@elonmusk is being sued by former @Twitter shareholders who claim they missed out on the recent surge in its stock price because he waited too long to disclose his acquisition of a 9.2% stake in the company. #JustTheNews
Read more ➡️ https://t.co/7IoYW7mbgy
— Just the News (@JustTheNews) April 13, 2022
In a lawsuit filed on April 12 in federal court, a group led by Marc Bain Rasella says Musk failed to report his purchases according to the law in an intentional plan to allow him to continue to buy at low prices. The group alleges that while the Tesla CEO was buying low, they had to sell low, losing money.
As soon as Musk’s investment in Twitter became public with his April 4 disclosure, stock prices jumped. The billionaire has a history of influencing such matters, including the cryptocurrency market. He likely knew what would happen once everyone knew about his move.
Rasella says in the court petition that federal law required Musk to disclose his purchases by March 24, and in the days between then and April 4, he continued buying stock. They want to make this a class action, which will take time. The goal is to seek damages for any shareholder who sold their stocks between the time Musk should have disclosed his investment and the date he actually did.
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