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Elon Musk sues for delayed disclosure of Twitter Holdings to SEC

Elon Musk has turned into another nemesis, this time a disgruntled Twitter shareholder, who says he suffered a loss after Musk failed to promptly notify investors that he had bought a 9.2% stake. part of Twitter.

The lawsuit, filed in federal court in the Southern District of New York on Tuesday, alleges that the Tesla CEO’s tardiness artificially lowered Twitter’s stock price, misleading investors. sold the stock before he revealed his investment in early April.

The plaintiff, Marc Bain Rasella, claims that Musk should have disclosed his assets to the U.S. Securities and Exchange Commission on March 24, when he passed a 5% share requirement disclosure, as Bloomberg News reported earlier. Instead, the billionaire revealed that he bought up to 9.2% of Twitter last Monday alone – instantly sending the stock up 27% as Muskian members called for the investment.

Meanwhile, according to Rasella’s complaint, by pulling his leg to file, Twitter’s most notorious troll was trying to get more shares at a reduced price.

A finance professor cited by Washington Upload Last week it was estimated that Musk made $156 million by buying at a lower price.

Rasella purports to represent Twitter’s class of shareholders, who sold their shares in the week prior to Musk’s disclosure.

Neither Musk nor Rasella immediately responded to requests for comment.

Musk has caused a stir on Twitter in recent weeks. Following news of his investment, he agreed to accept a seat on the company’s board through a deal that would prevent him from owning more than 14.9% of Twitter’s stock.

Then, last week, he continued to troll and criticize the company, ask his more than 81 million followers should the platform “die,” suggests it should revise its paid subscription tier and weigh in on whether its headquarters should be converted into a haven for the homeless or not (he later deleted the tweet).

On Sunday night, Twitter CEO Parag Agrawal abruptly announced that Musk would not be joining the company’s board after all.

“Elon’s appointment to the board will officially take effect on September 4, but Elon shared on the morning of the same day that he will no longer be on the board. I believe this is for the best,” he wrote.

Agrawal discreetly noted that Musk would need to complete a background check to officially take on the role and would have to act as a corporate trustee and “act in the best interests of the company.” company and all of our shareholders.” Those comments have sparked speculation about why Musk changed course and whether it was really his decision.

On Sunday, with the Internet exploding with news of the reversal, Musk simply tweeted a version of this emoji: 🤭.

The billionaire has repeatedly struggled with the Securities and Exchange Commission since 2018, when he surprised Tesla investors and tweeted that he was considering buying the electric car maker at a price point. $420/share.

The agency opened an investigation into the matter and determined that Musk had omitted key details about whether he actually had “secured financial resources,” as his tweet said. . In the end, Musk solved the problem, although he had to lose his Tesla presidency and $20 million in fines, among other stipulations.

https://www.thedailybeast.com/elon-musk-sued-over-delay-in-disclosing-twitter-holdings-to-sec?source=articles&via=rss Elon Musk sues for delayed disclosure of Twitter Holdings to SEC

Russell Falcon

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