The Dems' Reactions to Trump's Iran Strikes Proves Again That They Can't Be...
Whose Side Are Democrats Really On?
Can the Left Ever Stop Its Craziness?
The Media Bombs With Its Coverage of the Iran Attack and Leaves Smoldering...
NYC Mayor's Race Watch: A Referendum on National Housing Policy?
A Wise and Frugal Government We Do Not Have, Nor a Virtuous One
Trump Did the Right Thing
There's Nobody to Talk to
The ‘First String’ Is Back in the Game
With Iran Destabilizing the Middle East, American Energy Is More Important Than Ever
Three Years Since Dobbs and the World’s Still Turning
The Senate Must Act to Bring College Costs Under Control
Three Years After Dobbs, the Result Is a Tale of Two Very Different...
One Big, Beautiful Bill: A Blueprint for America's Comeback
Hours After Trump Declares Ceasefire, Iran Denies Agreement, Blames Israel for Starting Wa...
Tipsheet

Lawsuit Filed Against Elon Musk After He Allegedly Failed to Disclose Twitter Shares in Time

Britta Pedersen/Pool via AP

Tesla founder Elon Musk has been sued by former Twitter shareholders who say he did not disclose his stake in the tech giant in a timely fashion and thus, they missed out on profits from the social media platform's rise in stock.

Advertisement

Musk purchased a 9.2 percent stake in Twitter on March 24, making him the largest shareholder in the company. He was later offered a position on the company's board but has since rejected it, which means he will not face the same limits on how much Twitter stake he can own that he would have been under had he accepted a role on the board.

Plaintiff and stockholder Marc Bain Rasella filed a class-action lawsuit against Musk on behalf of all Twitter shareholders who held stock between the day Musk passed the five percent ownership threshold on March 24, and April 1.

The lawsuit claims that Musk was required to file his stake with the Securities and Exchange Commission within 10 days after passing the 5 percent ownership threshold but that he failed to do so until April 4.

Advertisement

Twitter shares rose 27 percent from April 1 to April 4, when Musk announced his stake in Twitter, and individuals who bought out of the stock missed out on the share price increase, the lawsuit argues.

"The members of the class [action lawsuit] are so numerous that joinder of all members is impracticable," Rasella said in the suit.

Rasella said he is seeking "compensatory and punitive damages" for himself and the other former shareholders in the suit. The dollar amount for Musk's "wrongdoing" shall be determined at a trial, the lawsuit reads.

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos

Advertisement
Advertisement
Advertisement