Elon Musk would not have declared to have passed above 5% of participation in Twitter within the legal deadlines. The multibillionaire is targeted by the complaint of a shareholder who considers himself wronged.
A Twitter shareholder has launched a lawsuit against Tesla and SpaceX boss Elon Musk. A complaint filed with stock market regulators, in which Elon Musk is accused of not having publicly revealed his participation in Twitter at a time when he was legally required to do so. He owned 5% of Twitter at the time and was able to continue to acquire more shares of the social network at good prices at the expense of sellers. In any case, this is the conclusion of the plaintiff, Marc Bain Rasella, according to which if Elon Musk had revealed that he owned 5% of Twitter, the social network’s share price would certainly have risen.
He says to file a complaint for “all Twitter shareholders who sold shares between March 24 and April 1, 2022”. Also according to this complaint, Elon Musk would have started to buy Twitter shares massively last January. As of March 14, the tycoon held 5% of the company’s capital. However, the Securities and Exchange Commission (SEC) requires investors to complete a form and publicly declare their participation within 10 days of passing the 5% shareholding in a company.
Elon Musk would have filled out this form, but too late. When he did, he already owned 9.1% of Twitter. This plaintiff is no doubt correct in estimating that such a revelation would have boosted Twitter’s share price. As proof, in the three days following the revelations of the stake held by Elon Musk in the company, the Twitter action saw its value increase from $39.91 to $49.97, an increase of 27%. “By keeping quiet about his growing stake in Twitter, Musk was able to artificially keep the stock price down and buy it at an attractive price”summarizes the complaint.