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Elon Musk is sued by shareholder for delay in disclosing Twitter's stake

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Chatterbox Moo wrote a column · Apr 14, 2022 03:20
Marc Rasella, a former $Twitter (Delisted) (TWTR.US)$ shareholder, sued Elon Musk on Tuesday for missing out on the recent run-up on Twitter due to Musk's delay in disclosing the stakes.
As we mentioned last week, Musk faced the legal issue of the delayed submission of purchasing files on Twitter. (Read more: Musk's shocking late purchasing filing may risk new fight with SEC)
U.S. securities law required investors to declare their stakes in 10 calendar days if holding was over the 5% mark. The lawsuit alleges Musk should report his position by March 24 while he filled it on April 4.
Twitter investors who sold their shares between March 24 and before Mr. Musk's stake was disclosed April 4 'missed the resulting share price increase as the market reacted to Musk's purchases and were damaged thereby.'
---according to the suit.
Source: Twitter
Source: Twitter
WSJ estimates the delayed disclosure let Musk save about $143 million on the stock. Musk bought more shares at lower prices during the time and defrauded them into selling at "artificially deflated" prices, Rasella said.
Rasella told Forbes magazine that he sold 35 Twitter shares for $1,373, at an average price of $39.23, between March 25 and 29.
So mooers, what do you think?
Source: WSJ, MarketScreener, Forbes
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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