Elon Musk is being sued by former Twitter shareholders who claim he failed to disclose his stake in the company on time, thus preventing them from profiting when the social media platform’s stocks shot up in price.
The class-action lawsuit was filed in Manhattan federal court by plaintiff and stockholder Marc Bain Rasella, who is suing on behalf of all Twitter shareholders who held stock in the company between March 24 and April 1, 2022.
Tesla CEO Musk acquired a 9.2 percent passive stake in the company earlier this month, making him the social media giant’s biggest individual shareholder.
Shortly after news of the disclosure surfaced, Twitter shares soared, sharply boosting the value of Musk’s stake.
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