New York: Billionaire Elon Musk was sued by Twitter Inc. In a complaint filed Wednesday in federal court in California, investors called for late disclosure of their stake in the social media company.
Musk saved himself $156 million by failing to disclose his purchase of more than 5% of Twitter as of March 14, investors said. He then continued to buy stock, and eventually disclosed in early April that he owned 9.2% of the company.
“By delaying disclosure of his stake in Twitter, Musk manipulated the market and bought Twitter stock at an artificially low price,” said investors led by Virginia resident William Heresniak.
Musk, the owner of electric car maker Tesla Inc., said the suit plans to take over Twitter for $44 billion.
Musk saved himself $156 million by failing to disclose his purchase of more than 5% of Twitter as of March 14, investors said. He then continued to buy stock, and eventually disclosed in early April that he owned 9.2% of the company.
“By delaying disclosure of his stake in Twitter, Musk manipulated the market and bought Twitter stock at an artificially low price,” said investors led by Virginia resident William Heresniak.
Musk, the owner of electric car maker Tesla Inc., said the suit plans to take over Twitter for $44 billion.