Announcing that he bought 9.2 percent of Twitter with an investment of $2.8 billion last week, Elon Musk had become the largest shareholder of the giant social media platform. Now, the famous billionaire is facing a class action lawsuit for late filing of his investment with the United States Securities and Exchange Commission (SEC).
Shareholders at a loss
According to the securities law, Musk, who increased his stake on Twitter to 5 percent on March 24, was required to report his investment to the SEC within 10 days. However, the famous billionaire, who did not provide any information to the institution until April 4, received great criticism from other shareholders.
Elon Musk has decided not to join the Twitter board
Pop-up In the lawsuit, it is stated that investors who sold their Twitter shares before Musk’s investment missed the rise in the share price after Musk’s statements and suffered. It is also alleged that Musk “made materially false and misleading statements and omissions by not disclosing to investors that he had purchased a 5% stake in Twitter, as required.”
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