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.
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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...

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