Is This Trump's Best Line From the White House Easter Egg Roll?
The Left's Obsession With Clipping Pete Hegseth Is Bordering on Psychotic
Trump Won’t Get Tricked Into Sacrificing Pete Hegseth to the Democrats
The Questions Democrats Will Not Ask
Rogue Commanders, The Enemy Within
An Easter Weekend Filled With Manufactured Scandals From the Floppy-eared Media
When a Wrong Narrative Hides the Truth
Trump’s DHS and DOJ Are Going After MS-13, Not Moms at School Board...
The World Needs People Day More Than Earth Day
The Savaging of the Climate Politico-Legal-Media Complex
The Moral Bankruptcy of a 'Day of Rage' and the Palestinian Legacy of...
MSNBC Hits Back At Gavin Newsom For Calling Deportation Of MS-13 Member A...
Tim Walz’s Daughter Claims Trump Would Have Deported Jesus, Lumping Him with MS-13
Jamie Raskin Vows Revenge On Foreign Leaders Who Work With Trump
Youngkin’s Crackdown: Over 500 Criminal Illegal Immigrants, Gang Members Swept Off Virgini...
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