Former Twitter shareholders have filed a lawsuit against Elon Musk, claiming that they suffered financial losses from the recent rise in share prices, claiming that Musk waited a long time to publicize the purchase of the same 9.2% stake in the company. .
In a lawsuit filed in federal court in Manhattan, the shareholders claimed that Musk, who heads the electric vehicle manufacturer Tesla Inc, had made “false and misleading statements and omissions” by failing to announce on Twitter that he had on March 24, as provided by the relevant federal legislation.
Twitter shares rose 27% on April 4 to $ 49.97 ($ 46.11) from $ 39.31 (€ 36.28) after Musk revealed that he had bought the shares, which shareholders saw it as a vote of confidence from the richest man in the world to Twitter, which is based in San Francisco.
The former shareholders, led by Mark Russell, said the delay in revealing the stock market had allowed Musk to buy more Twitter shares at lower prices, accusing him of abusing their trust by selling their shares to ” artificially low ”prices.
The lawsuit seeks the payment of damages, but also the imposition of other measures that were not specified.
A Musk lawyer did not immediately comment on the report. Former Twitter shareholders did not turn against Tesla.
The US stock trading law requires investors to disclose within 10 days the time of purchase of a 5% stake in a company, and in Musk’s case, the deadline was March 24.
Twitter announced on April 5 that Musk would become a member of the company’s board, but this week Musk announced that he had decided not to take such a step.
Through his non-participation in the board, Musk, who is one of the most productive users of the mentioned social networking site, can continue to buy shares, without being bound by the agreement he has made with the company to limit the share participation. of at 14.9%.
Some analysts have suggested that Musk may push Twitter to make changes or even make a takeover bid without being asked to do so.
Rasela said he sold 35 shares of Twitter for a total of $ 1,373 (€ 1,267) between March 25 and 29.
Musk’s fortune is estimated at $ 265.1 billion (€ 244.64 billion), according to Forbes magazine.
Source: AMPE
Source: Capital
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