Elon Musk sued by Twitter investor accusing him of failing to declare 9.2% stake on time
Elon Musk is being sued by a Twitter investor accusing him of failing to declare his 9.2 per cent stake on time.
The billionaire’s relationship with the social media platform has taken another turn in a month where he has become its biggest shareholder.
Musk, 50, chief executive of electric car maker Tesla, said on April 4 that he had bought 9.2 per cent of Twitter for £2.2billion.
Lawsuit: Elon Musk, who is the chief executive of electric car maker Tesla, declared on April 4 that he had snapped up a 9.2% stake in Twitter for £2.2bn
US laws mean anyone who buys more than 5 per cent of a firm must alert the authorities within 10 days.
Musk, who has more than 73million shares in Twitter, is believed to have reached the 5pc threshold on March 14 but announced it nearly a month later.
Twitter shareholder Marc Bain Rasella’s lawsuit says the world’s richest man benefited from late disclosure, as shares were sold at artificially low prices.
Once Musk became the biggest shareholder, Twitter shares rose 27 per cent on April 4 – the biggest one-day rise since its debut in 2013. Last Saturday he declined to join the board.
Analysts now believe he will try to take a controlling stake. Shares in Twitter rose 3.1 per cent.