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Elon Musk was sued by a Twitter shareholder who alleged he disclosed his stake in the social-media company too late

Elon Musk was sued by a Twitter shareholder who alleged he disclosed his stake in the social-media company too late
Elon Musk, CEO of Tesla, attends the opening of the Tesla plant in Berlin-Brandenburg in Gruenheide, Germany

Elon Musk.Patrick Ball/AFP

  • A Twitter contributor has filed a lawsuit against Elon Musk.

  • The lawsuit alleges that the Tesla CEO’s delay in disclosing his stake in Twitter to the Securities and Exchange Commission sent Twitter’s stock price down.

  • Musk did not immediately respond to a request for comment.

A Twitter shareholder has sued Elon Musk, claiming that by not disclosing his stake in the social media company soon enough, the Tesla CEO kept Twitter’s stock price low.

Bloomberg reports that the lawsuit was filed in Manhattan federal court on Tuesday by Mark Payne Russella. The lawsuit alleges that Musk was asked to disclose his Twitter stake by March 24, but did not do so until April 4. When Musk disclosed his stake in Twitter, the company’s stock price rose 27%.

According to Russella, Musk had 10 days to notify the Securities and Exchange Commission of his stake after it crossed the 5% threshold on March 14. He disclosed his stake earlier, the lawsuit argues. By postponing the disclosure, Russella said, Musk was able to continue buying Twitter shares at a discount.

Rasella aims to represent a class of investors who dumped Twitter posts between March 24 and April 1.

Musk and Twitter did not immediately respond to requests for comment.

The lawsuit is the latest development in a dramatic saga that has unfolded since Musk publicly announced his 9.1% stake in Twitter, a platform he has more than 80 million followers.

The investment makes Musk the company’s largest single shareholder, and he said he’s looking forward to making important changes as a member of the company’s board of directors. But in a major reversal, Twitter CEO Paraj Agrawal said on Sunday that Musk would not join the board after all.

Read the original article on Business Insider

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