Elon Musk SUED by Twitter shareholder who claims Tesla CEO ‘delayed disclosing that he owned more than 5% in stock’
Marc Bain Rasella filed a securities fraud lawsuit against the billionaire in Manhattan federal court on Tuesday.
Musk was accused of securities fraud by Marc Bain Rasella in Manhattan federal court Tuesday, over claims that he is required to disclose his holdings to the Security and Exchange Commission. The plaintiff claimed that Musk’s delay in filing the disclosure allowed him to buy more shares at a lower price, cheating sellers of Twitter stock of increased profits.
The investor added that when Musk revealed his Twitter stake in the SEC filing, shares rose 27%, from $39.31 on April 1 to $49.97 on April 4.
Rasella is seeking to represent investors who sold Twitter shares between March 24 and April 1.
Rasella v. Musk (22-cv-03026, U.S. District Court, Southern District of New York (Manhattan))