Twitter shareholder Marc Bain Rasella sued Elon Musk on Tuesday, accusing the billionaire of failing to disclose his Twitter stake within the time frame required by the SEC.
on Tuesday, accusing the billionaire of failing to disclose his Twitter stake within the time frame required by the U.S. Securities and Exchange Commission . The move allegedly helped Musk save approximately $143 million in subsequent share purchases, according to the lawsuit. Rasella, who aims to represent all investors who sold their Twitter stock during the week of March 24 to April 1, filed the lawsuit in the U.S. District Court for the Southern District of New York.
The lawsuit argues that by filing his disclosure so late, Musk, the CEO of Tesla and Twitter’s top shareholder, violated a securities law requiring shareholders to alert the SEC within 10 days after they exceed a 5% ownership threshold in a company. Rasella’s suit alleges that Musk’s Twitter investment exceeded 5% by March 14, but he continued to buy up Twitter shares at about $39 per share and failed to disclose his stake until last Monday. At that point, it was revealed that he commanded a 9.
Rasella’s suit argues that the delay may have hurt the wallets of Twitter shareholders who sold their stock during the March 24–April 1 time frame, while also allowing Musk to continue to buy shares at an artificially discounted rate.
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