Elon Musk, the X chairman, filed a lawsuit against former Twitter shareholders in a new registration in Manhattan federal court asking for the termination of it. Musk claims that Musk put off revealing his large ownership stake in the social media company until early 2022.
Musk argued that” all evidence” point to his pause being an unexpected error rather than an attempt to defraud owners.
According to the proposed class action lawsuit, Musk and his wealth manager, Jared Birchall, were aware of the SEC’s requirement to make publicly available his 5 % stake in Twitter by March 24, 2022. However, they waited an extra 11 times to do so.
The investors claimed that this delay made it possible for Musk to purchase more shares at lower prices, leading to savings of more than$ 200 million. Following Musk’s disclosure of his 9.2 % stake on April 4, 2022, Twitter’s stock price surged by 27 %.
Musk argued in his defence that he had planned to share his Twitter play at the end of 2022 but that he had already realized he had misinterpreted the SEC disclosure law.
” This is not a scheme to defraud”, Musk said. ” All signs– including those in the pleadings– stage to mistake”.
Musk also refuted the claims made by the investors that an unknown Morgan Stanley lender assisted in the creation of a trading plan to buy Twitter shares without acquainting the market.
US District Judge Andrew Carter last September declined to reject an earlier version of the lawsuit, citing data that Musk had testified about the SEC publication and had been under oath to disagree. The US District Court for the Southern District of New York is hearing the case, Oklahoma Firefighters Pension and Retirement System v. Musk et al.
