Former Twitter shareholders are suing Tesla’s CEO Elon Musk, claiming they missed out on the recent surge in its stock price because he waited too long to disclose his 9.2 percent stake in the company. The class action suit, filed in a Manhattan federal court, argues that Musk made “materially false and misleading statements and […]
Former Twitter shareholders are suing Tesla’s CEO Elon Musk, claiming they missed out on the recent surge in its stock price because he waited too long to disclose his 9.2 percent stake in the company.
The class action suit, filed in a Manhattan federal court, argues that Musk made “materially false and misleading statements and omissions” by failing to disclose his investment in Twitter by March 24 - the day he was legally required to under federal law, Just the News reports.
Following news that Musk acquired his stake, Twitter shares rose 27 percent.
The group of former shareholders says the late disclosure defrauded them into selling their holdings at “artificially deflated” prices.
The suit seeks unspecified compensatory and punitive damages.
