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Now Elon Musk is being sued by a Twitter investor
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Elon Musk is being sued by a Twitter shareholder after he failed to announce his recent 9.2% stock acquisition sufficiently promptly.
US federal trade law requires that investors inform the Securities and Exchange Commission (SEC) within 10 days when they purchase a 5% stake in a company. It seems Musk took three weeks.
By extending the notice period, Musk was able to profit from the bump in Twitter’s stock price when news emerged of his investment, apparently to the tune of $156 million, while his fellow Twitter investors remained oblivious.
This has resulted in a class action lawsuitbeing filedagainst Musk for his seemingly illegal conduct.
It’s been quite an eventful few weeks for the Tesla CEO and Space X head honcho. First he took everyone by surprise in becoming thebiggest Twitter shareholderby purchasing a 9.2% stake worth $2.9 billion.
Then, after issuing a casual poll on whether Twitter should add an edit button – seemingly forcing the company to respond bypromising to implementsaid feature – news emerged that he would be joining the board, seemingly under the proviso that he halt his stock acquisition at 15%.
News then emerged that Muskwouldn’t be joiningthe Twitter board after all. According to Twitter CEO Parag Agrawal, Musk had changed his mind, and it was all “for the best.”
If you had thought that was going to be the end to this deeply weird back and forth, well, you clearly haven’t been paying much attention to Musk’s MO. From becoming the most powerful force in the company to being sued by investors in less than a month is classic Elon Musk.
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Jon is a seasoned freelance writer who started covering games and apps in 2007 before expanding into smartphones and consumer tech, dabbling in lifestyle and media coverage along the way. Besides bein…
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Founded in 2003, Trusted Reviews exists to give our readers thorough, unbiased and independent advice on what to buy.
Today, we have millions of users a month from around the world, and assess more than 1,000 products a year.
Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
