(credit: Getty Images | eccolo74)
Elon Musk is facing a shareholder lawsuit over his failure to reveal his investment in Twitter until 11 days after a deadline set simply by federal law.
Musk started buying Twitter stock in January and acquired more than 5 percent of all shares by March 14, the lawsuit said. Under US law, “Musk was required to file a Schedule 13 with the SEC within 10 days of passing the 5 percent ownership threshold in Twitter, or March 24, 2022, ” said the complaint filed yesterday in US District Court for the Southern Area of New York.
Twitter’s stock rose 27 percent on April 4 when Musk revealed his 9. 2 percent stake . This means that investors who sold before April 4 missed out on the gains and that Musk was able to keep buying stocks at artificially low prices, the class-action complaint said:
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