Elon Musk claims delayed disclosure of Twitter stake was a mistake, seeking to dismiss lawsuit

From Investing.com: 2024-07-05 16:15:37

Elon Musk seeks to dismiss a lawsuit by former Twitter shareholders, arguing his delayed disclosure of a 9.2% stake was a mistake, not fraud. Investors claim Musk saved over $200 million by buying more shares at lower prices before the stock soared 27% when his stake was revealed in April 2022. Musk denies wrongdoing.

The investors, led by an Oklahoma public pension fund, allege that Musk violated an SEC rule by waiting to disclose his Twitter stake, aiding him in amassing shares at cheap prices. Musk, the world’s richest person, maintains his delay was unintentional, blaming a misunderstanding of the disclosure rule. The SEC is investigating the matter.

In a court filing, Musk refutes claims that a Morgan Stanley banker helped him strategize to buy Twitter shares discreetly. Despite the controversy, Musk went on to purchase Twitter for $44 billion in October 2022. The ongoing legal battle between Musk and the shareholders is being closely watched by the investing community.

U.S. District Judge Andrew Carter previously declined to dismiss an earlier version of the lawsuit, citing evidence that Musk was aware of the SEC disclosure requirements. The case, Oklahoma Firefighters Pension and Retirement System v Musk et al, is ongoing in the U.S. District Court for the Southern District of New York. Musk’s handling of the Twitter situation continues to raise questions about transparency and accountability in corporate governance.



Read more at Investing.com: Musk suggests late Twitter disclosure was a mistake, seeks to end lawsuit By Reuters