The lawsuit alleges that Musk failed to disclose his nearly $ 3 billion stake in the company, which’s worth nearly $ 3 billion, to the U.S. Securities and Exchange Commission. Under U.S. law, investors are required to notify the SEC within 10 days of acquiring more than 5% stake in a listed company. Image: Shares on Twitter skyrocketed after the revelation of Mr. Musk’s share Musk had passed that threshold by March 14, but did not publicly disclose his stake until April 4 – following the news that the company’s shares had jumped 27%. A new class action lawsuit accuses Mr Musk of using the gap between the 5% threshold and the percentage quote to acquire additional shares in the “artificially deflated” price. It was filed in New York on behalf of individuals who sold their shares between March 24 and April 4 who “lost the resulting share price increase as the market reacted to the Musk markets and suffered losses.” The billionaire meme-poster was ready to join the Twitter board after the acquisition before apparently deciding not to do so. The share price of Twitter fell shortly after this news, although it remains well above the entry price at the time of the announcement of the acquisition of Musk. Parag Agrawal, the company’s chief executive, said the board was “excited to work with” Musk under “historical scrutiny” and had “many discussions” about it, both between them and Musk. “Elon is our largest shareholder and we will remain open to his contribution,” Agrawal added in a statement posted on Twitter. Twitter had already informed the US securities regulator that Musk would serve on the board as a Class II executive after buying a 9.2% stake. The board’s offer had preoccupied some Twitter employees, who were worried about his moderate stance. Several officials told Reuters news agency that Musk’s views could weaken long-standing efforts to make Twitter a safe haven and could allow trolling and mob attacks to flourish.
