Elon Musk Faces Lawsuit Over Twitter Disclosure Delay
Elon Musk is facing a class-action lawsuit from Twitter investors over an 11-day delay in disclosing his stake in the company.Summary
Elon Musk is being sued by Twitter investors who allege they suffered financial losses due to his delayed disclosure of a 5% stake in the company in 2022. A federal judge allowed the class-action lawsuit to proceed, finding that Musk did not disprove claims his actions impacted Twitter’s share price. Investors, led by the Oklahoma Firefighters Pension and Retirement System, claim Musk saved over $200 million by acquiring shares at lower prices during the delay, while they were forced to sell at depressed prices.
Musk argued investors couldn’t prove they relied on his actions, but the court disagreed, stating his silence regarding the stake was sufficient. This lawsuit is separate from another case in San Francisco where Musk was found liable for misleading investors about bots during the Twitter acquisition, potentially facing damages up to $2.6 billion. The U.S. Securities and Exchange Commission also filed a lawsuit over the disclosure delay, with settlement discussions currently underway, though Musk intends to appeal the class action ruling.
Simultaneously, SpaceX, also led by Musk, is considering an IPO with a larger-than-usual allocation of shares for retail investors – potentially up to 30% – and a possible valuation exceeding $1.8 trillion.
(Source：CoinGape)