Billionaire Elon Musk was sued by Twitter investors for delayed disclosure of his stake in the social media enterprise in a complaint filed on Wednesday in California federal court.
The investors said Musk saved himself $156 million by failing to disclose that he had acquired extra than 5% of Twitter by March 14. He continued to purchase stock immediately after that, and in the long run disclosed in early April that he owned 9.2% of the company.
“By delaying his disclosure of his stake in Twitter, Musk engaged in current market manipulation and bought Twitter inventory at an artificially low price tag,” reported the traders, led by Virginia resident William Heresniak.
Earlier this month, the Wall Road Journal noted that the Securities and Exchange Commission is investigating Musk’s delayed disclosure.
The fit comes after Musk, the proprietor of electric carmaker Tesla, reported he prepared to choose about Twitter for $44 billion.
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