Industry

Musk sued by Twitter investors for delayed disclosure of stake

Elon Musk. File

Elon Musk. File | Photo Credit: AFP

Billionaire Elon Musk was sued by Twitter Inc investors for delayed disclosure of his stake in the social media company in a complaint filed on Wednesday in California federal court.

The investors said Mr. Musk saved himself $156 million by failing to disclose that he had purchased more than 5% of Twitter by March 14. He continued to buy stock after that, and ultimately disclosed in early April that he owned 9.2% of the company.

"By delaying his disclosure of his stake in Twitter, Mr. Musk engaged in market manipulation and bought Twitter stock at an artificially low price," said the investors, led by Virginia resident William Heresniak.

The suit comes after Mr. Musk, the owner of electric carmaker Tesla Inc, said he planned to take over Twitter for $44 billion.


Our code of editorial values

  1. Comments will be moderated by The Hindu editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

Printable version | May 26, 2022 9:25:58 pm | https://www.thehindu.com/business/Industry/musk-sued-by-twitter-investors-for-delayed-disclosure-of-stake/article65464584.ece