Elon Musk could go back to court over his recent purchase of nearly 10 percent of Twitter shares.
Another investor in the social network has filed a lawsuit with Musk, accusing him of hiding information from other shareholders to obtain higher profits.
The investor is Marc Bain Rasella, who indicted Musk in federal court in New York on Tuesday, April 12. Rasella assures that Musk did not inform the Securities and Exchange Commission (SEC) within the stipulated period that he had bought 5 percent of the company’s shares on March 14.
The law indicates that this communication must be made within 10 calendar days of purchase, but Musk did not do so until April 4.
According to Rasella, this movement on the part of the tycoon meant that the company’s shares did not rise in price, in this way he was able to obtain a percentage of participation at a lower cost, while the shares of the rest of the investors lost value.
The demand specifies that Musk made $143 million by buying Twitter shares at a lower price, a move that made him the company’s largest individual shareholder with 9.2 percent of the total.
Plaintiffs demand jury trial for damages
Rasella’s lawsuit is class action, as she is acting on behalf of Twitter investors who sold shares during that specific period in which Musk failed to notify the purchase and consequently forfeited the profits they would have benefited from if Musk had disclosed his shares. investment within the required period.
The plaintiffs are demanding a jury trial for compensatory and punitive damages in amounts that have not been specified.
The SEC has not yet made any public comment on what action it might take against Musk for failing to comply with the legal regulations. Nor has the tycoon of South African origin spoken about it.