Twitter investors sue Elon Musk over delay in disclosing size of his stake
Law says investors must inform SEC within ten days after acquiring over 5% stake in any company, which Musk didn’t abide by
By Arghyadeep Dutta
Published - Apr 13, 2022, 06:36 PM ET
Last Updated - Feb 21, 2024, 03:20 PM EST
• Some Twitter investors say they lost out on potential gains due to this delay
A group of Twitter Inc (NYSE: TWTR) shareholders sued Elon Musk on Tuesday, alleging that the billionaire failed to disclose his acquisition of over 9% stake in the social media company in a suitable timeframe.
Tesla Inc (NASDAQ: TSLA) CEO started buying Twitter shares in January and allegedly amassed a 9.2% stake on March 14.
Federal trade laws dictate that investors must notify the SEC within ten days of acquiring over a 5% stake in any company, which means Musk should have informed the SEC by March 24.
