Elon Musk sued for delay in declaring his investment in Twitter
Billionaire Elon Musk’s Twitter account – Screenshot
According to the technology page EngadgetBillionaire Elon Musk just became the largest shareholder in Twitter in the past few weeks but has faced a class-action lawsuit over his investment in the social network.
Specifically, on April 12, Mr. Marc Bain Rasella, another shareholder at Twitter and the representative of plaintiffs with similar interests, filed a lawsuit in the Southern District of New York, accusing him of Elon Musk violated federal securities laws by delaying the official announcement of his investment at Twitter.
Under securities laws, Mr Musk is required to file an investment with the US Securities and Exchange Commission (SEC) by March 24, 10 days after his Twitter stake increased. to 5%, however he did not do so until April 5.
According to the plaintiff, the delay in this announcement does not sound too serious at first, but most likely has brought billionaire Musk about $ 156 million.
“Investors sold Twitter shares between March 24, 2022, when Musk was required to disclose his ownership stake in Twitter, until April 4. -2022, missed the time when the stock price rose when the market reacted to the news of Mr. Musk’s share purchase and suffered damages accordingly,” the lawsuit states.
According to this plaintiff, he and other investors sold shares at a reduced price as a result of the acquisition of billionaire Elon Musk. The lawsuit also accuses Musk of “making false and misleading statements” to investors.
The lawsuit occurred in the context of many days of repeating information related to Twitter and billionaire Musk. Initially, the CEO of Tesla Company said he had agreed to join the board of Twitter and proposed many ideas to reform the operation of this social network, but later announced that he would not join the board of directors. treat anymore.
at Blogtuan.info – Source: tuoitre.vn – Read the original article here
