Under the securities law, Musk had until March 24 to file with the SEC – 10 days after his Twitter account grew to 5 percent – but he did not do so until April 4. This delay may not sound very significant, but it could have cost him up to $ 156 million. According to the lawsuit, these profits were made at the expense of other shareholders, who could not make similar profits. “Investors who sold shares of Twitter between March 24, 2022, when Musk should have revealed his ownership of Twitter, and before the actual revelation on April 4, 2022, lost the resulting share price increase as the market reacted to “Musk markets and be harmed by it,” the lawsuit states. According to the plaintiff, he and other investors sold shares at “artificially deflated” prices as a result of Musk’s actions. The lawsuit also alleges that Musk made “substantially false and misleading statements and omissions, failing to disclose to investors that he had acquired a 5% stake in Twitter as required.” The lawsuit comes after a few chaotic days for Twitter and Musk. The CEO of Tesla and the well-known Twitter troll initially agreed to join the board of directors of Twitter, to the great disappointment of some employees. But the decision was overturned shortly after several days of bizarre tweets by Musk, who polled his followers on Twitter if the company needed to change its name and speculated about whether the service was “dying”. In an email to employees, Twitter CEO Parag Agrawal noted that as a board member, Musk would be “the company’s trustee, where, like all board members, he must act in the company’s interest.” and all our shareholders “. He added that he believed it was “for the best” that Musk would not eventually take his place. All products offered by Engadget are selected by our editorial team, regardless of our parent company. Some of our stories include affiliate links. If you purchase something through one of these links, we may gain an affiliate commission.
