Elon Musk Sued By Twitter Shareholder For Failing To Follow SEC Bylaws – OutKick
Everyone’s second favorite SEC is back to rain on Elon Musk’s fashion show.
The CEO was back in the headlines on Tuesday after a federal securities class action lawsuit was filed against Musk, alleging that he failed to report his purchase of Twitter stock ($TWTR) to the SEC within a required time frame — costing investors a lot of dough with paper hands.
According to NPR Tech’s Bobby Allyn, “the Twitter shareholder is suing Elon Musk in a federal securities class action, alleging that he “made materially false and misleading statements and omissions in failing to disclose to investors its stake in Twitter”.
Investor, Marc Bain Rasella, takes up arms with Musk on behalf of shareholders who sold their shares before the ensuing gold rush when news of Twitter’s new majority shareholder broke.
And also that he might have kept the news secret to buy more shares at a lower price.
The Tesla CEO filed a formal notice of his ownership with the Securities and Exchange Commission on April 4, but his Twitter stock purchase dates back to January 2022.
By March 14, Musk had gradually purchased more than 5% of the company’s total shares.
Yet Musk has paid a hefty sum to restore pure, First Amendment-backed content to Twitter.
Twitter stock jumped more than 25% after its first week of trading since the announcement of the Musk purchase (April 5). Musks’ earnings from his Twitter stock were estimated at $156 million.
Twitter has yet to respond to the litigation.
Musk claims everything was purchased with Robinhood gift cards, but has yet to issue an official response.
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