Elon Musk invested big in Twitter, but now he's getting sued over it.

Elon Musk invested big in Twitter, but now he's getting sued over it

The drama continues.

Elon Musk is in trouble over his recent investment in Twitter.

According to a SEC filing, a Twitter investor filed a class action lawsuit against Musk, alleging that he was late to disclose his recent purchase of Twitter shares. This in turn caused damage to other investors, who missed out on potential gains after Twitter stock price surged on the news of the world's richest man buying it.

"Defendant Musk, because of his position as a 5 percent owner in Twitter, had an obligation to file a Schedule 13 with the SEC," the lawsuit states. "Musk was required to file a Schedule 13 with the SEC within ten days of passing the 5 percent ownership threshold in Twitter, i.e., on March 24, 2022. Musk did not file a Schedule 13 with the SEC within the required time and instead continued to amass Twitter shares, eventually acquiring a 9.1 percent stake in the Company before finally filing a Schedule 13 on April 4, 2022."

The lawsuit further claims that Musk had a motive to file the Schedule 13 late, as this enabled him to purchase further shares of Twitter at a lower price.                                       

Musk's Twitter adventure (publicly) started on March 25, when he launched a Twitter poll asking followers whether Twitter "rigorously adheres" to the principle that "free speech is essential to a functional democracy." Musk further suggested that some changes might be happening at Twitter soon.

A few days later, it became clear that he'd been purchasing Twitter shares and that he'd become the company's largest individual shareholder. Soon after, Twitter announced Musk would be joining the company's Board of directors (which, notably, would forbid him from buying more than 14.9 percent of Twitter stock), but the appointment never materialized, though Musk continued to suggest changes at Twitter as if he ran the company.

More in TwitterElon Musk

Comments

  1. He’s still going to make money even after he pays the lay suit. If I was him I would dump the stock and watch it sink for a few weeks

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    Replies
    1. then buy even more at a lower price and do it all over again ;D ;D >,< LMAO

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    2. you mean pump and dump?

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  2. I wonder, what is twitter shareholders trying to hide here? Employees the afraid of changed management, clearly only want to keep their gravy train running. Twitter is trying to cancel Elon, and that sucks for free speech - let them have the day in court. I bet Elon counters their suit and probably wins.

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  3. He isn’t being sued over buying the stocks. He is being sued for not discussing the correct information at the right time, which can be seen as manipulating the market.

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    1. He's no doubt a visionary and is absolutely brilliant, but he does have a LONG history of stock manipulation.

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  4. What a poor Elona! ;D ;D ;D LMAO
    Shame on him! having multi billion dollar assets and playing games to make more money at the expense of others! What a misery!

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    Replies
    1. it's propaganda. When you are a billionaire, you always are sued by people trying to get rich. This is such an exaggerated story. Lol. He did not take a board position likely because he will get more stock.

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    2. be careful. He'll buy Dubai, next! Lol

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    3. says the one with flag of Putins nazism

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    4. what a ridiculous statement

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    5. Whether you like it or not, that flag represents the greatest country and nation on the planet! And soon or later, its President will deal with hypocritical & incompetent US leadership and it’s allies! Real Nazi is West, it just needs to be exposed!

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  5. The planet doesn't deserve him. ...

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  6. Elon Musk is great. CLAP (y)

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  7. The first step is where about,the last is too for all human beings.

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  8. Cry babies everywhere go Elon!

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  9. Elon is the best Chess Player in the Tech World!

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  10. this rule should be changed to say "when done purchasing planned amount of stock". I also never saw Facebook announce they planned to purchase companies so other investors could make larger profits also.

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  11. Sec fined him millions before and he made hundreds of million on the rebound. Don't think for a second he hasn't already planned on how to make money off these grifters and thieves

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  12. Why hasn't this gone on with Bill Gates?

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  13. Sounds like he made a publicity stunt to earn more money and someone pulled down the veil on him…you reap what you sow.

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  14. All he has to do is to pull his pocket change out and buy a few Democrats and it will go away.. Bet he isn't worried...I believe he's in it for the good...

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  15. Must be a tax dodge!

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    Replies
    1. he's trying to take majority shareholder and do away with censorship.

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    2. not a bad thing.. but a bit megalomaniac of him though no!?!

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    3. he doesn't need the money. Kinda diggin where he's at

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  16. I’m sure if you pull the sheets off they are all Democrat Lawyers

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  17. Musk should sue Twitter for witholding informations from its investors then ;) ;D LMAO

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  18. They just don't want him to own Twitter.
    Keep trying libs, it's not gonna work on Elon.

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  19. Well he's a billionaire he should be okay

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  20. The snakes can’t handle it!!

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  21. The real criminals are the grifters in government and their insider trading.

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  22. So basically investors are mad that they weren’t given enough notice so they could inside-trade??

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  23. I would drop a rocket booster on the person who filed the lawsuit.

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  24. They're scared. ;D LMAO

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  25. Must be employee ;D ;D ;D LMAO

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  26. Ok now it’s a trap

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  27. He has money and the case will go away.

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  28. That's what you called f****** grade the rich want more and more and more these are greedy son of a b****

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  29. The left are scared to lose their false narrative propaganda machine

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  30. They are typical democrats. Lol guess what happens to Twitter if he dumps his shares. ;D ;D LMAO boom a few days later he could buy back double the amount for half the price. It's a game they shouldn't play with him but don't know any better.

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  31. Local Zambian apartheid Emerald Mine Owner Musk pumps and dumps and gets away with it.

    Local wageslave Bootstrapium miners keep striving for excellence, and "Being themselves" are told that one day Musk will do it again if they work hard enough

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  32. Just buy the rest of it and shut it down.

    ReplyDelete

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