Problems for Elon Musk they don’t seem to want to finish. The CEO of SpaceX and of Tesla has recently become the Twitter’s major shareholder (we told you about it here), but not everything seems to have gone the right way. In the last few hours, The company’s class action lawsuit was filed against Elon Musk.
In the last few hours, some Twitter shareholders are suing Elon Musk for the purchase of a share of more than 9% of the social media platform. With the purchase by the richest man in the world, Twitter’s share price rose 27%.
Nonetheless, buying Twitter got Elon Musk in trouble. In fact, according to a group of investors, Musk would have announced his purchase belatedly and this would allow him to save about 143 million dollars. Legal documents filed in New York by Marc Bain Rasella claim that the South African businessman should have notified the Securities and Exchange Commission within ten days from the acquisition, or the March 24from exceeding the 5% share on Twitter.
However, in the official case file, it is reported that Musk did not report any purchases to the company until April 4, 2022and as a result, according to the group of investors, he was able to continue buying Twitter shares at advantageous prices until the official announcement.
At the moment, Elon Musk has not yet released any official statements, therefore it will be necessary to await the decisions of the court. Rasella’s lawsuit asks for the status of class action on behalf of Twitter investors who sold shares during the crucial eleven day period, which caused them to lose the earnings they would have enjoyed if Musk disclosed his investment within the allotted time frame.
The legal action involves a jury trial for compensatory and punitive damages of an unspecified amount and, therefore, we will have to wait for an official announcement or the end of the trial to know the truth.
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