Twitter investors sue Elon Musk for stock 'manipulation' during takeover bid

Accused of delaying stake disclosure

clock • 1 min read
The Twitter shareholders said Musk purchased Twitter stock at an artificially low price.

The Twitter shareholders said Musk purchased Twitter stock at an artificially low price.

Twitter investors have sued billionaire Elon Musk, accusing him of manipulating the company's share price downwards by delaying disclosure of his investment in the firm.

In their court rulings, the shareholders claimed that Elon Musk saved $156m by failing to report that he had purchased more than 5% of Twitter before March 14. According to the lawsuit, filed on Wednesday, local time in San Francisco Federal Court, Musk continued to buy stock after that and eventually announced in early April that he held 9.2% of the company. "By delaying the disclosure of his Twitter interest, Musk participated in market manipulation and purchased Twitter stock at an artificially low price," said the investors, led by Virginia resident William Heresniak. Elon Musk...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on US

Amazon shares are down 40% from its peak

Growth stock pickers feel like 'a kid in a candy shop'

'It is time to go shopping'

clock 22 June 2022 • 4 min read
Markets are generally positive in months with rate rises

Rate hikes could have 'benign' impact on equities

Follows Fed 75bps hike

clock 20 June 2022 • 1 min read
Sectors in the US stock market that have been leaders over the last decade have come to a sudden stop in terms of their outperformance of the broader market since the start of 2022.

Deep Dive: A paradigm shift for US equities

'Valuations matter'

clock 15 June 2022 • 5 min read