They’re suing Elon Musk for buying 10% of Twitter

Marc Bain Rasella, a Twitter investor, continues Elon Musk After that, he bought 5% of the company’s stock on March 14 and didn’t report it to the SEC (Securities and Exchange Commission) until April 4. Rasella assures that this movement on the part of the tycoon prevented the shares of the company from rising in price. This therefore allowed Musk to acquire the remaining percentage at a lower cost.

Investors, it should be remembered, must inform the SEC of the purchase of shares of a company if these reach or exceed 5%. The organization, moreover, undertakes to inform about this type of movement within a maximum period of ten days. Elon Musk did it 21 days later. According to Washington Postthe purchase of 5% of the company was completed on March 14, and the Securities and Exchange Commission made the purchase public on April 4.

The lawsuit, filed in Manhattan federal court by investor Marc Bain Rasella and on behalf of all investors who sold Twitter stock between March 24 and April 1, 2022, details how Musk’s delay in reporting to the SEC has kept the stock price low. This, in fact, not only allowed the businessman to continue buying the remaining percentage of Twitter’s assets — 4.2% in order to complete the officially announced 9.2% — at a lower price. It also prevented investors from selling some of their shares at the price they would have been had Musk informed in time.

“When Musk finally filed the required Exhibit 13, revealing his involvement with Twitter, the company’s stock fell from a closing price of $39.91 per share on April 1, 2022 to $49.97 per share on April 1, 2022. April 4, 2022, an increase of approximately 27%.”

Part of the lawsuit was filed in Manhattan federal court.

Elon Musk remains silent after refusing to join Twitter’s board

For the time being, Elon Musk has not commented. The manager has indeed spent days without making any publications related to the purchase of 9.2% of the company. We know he will no longer be on the board after Parag Agrawal and the rest of the board offered him a position on April 5. Musk initially agreed to be part of the team. However, on the 9th of this month, he ended up rejecting the proposal, as confirmed by the CEO of the San Francisco firm.