In a proposed class action filed in Manhattan federal court, the shareholders said Elon Musk made “materially false and misleading statements and omissions” by failing to reveal he had invested in Twitter by March 24 as required under federal law. Twitter shares rose 27% on April 4, to $49.97 from $39.31, after Musk disclosed his stake, which investors viewed as a vote of confidence from the world’s richest person in San Francisco-based Twitter.
was sued by former Inc shareholders who claim they missed out on the recent run-up in its stock price because he waited too long to disclose a 9.2% stake in the social media company. In a proposed class action filed in Manhattan federal court, the shareholders said Musk, the chief executive of electric car company Inc, made “materially false and misleading statements and omissions” by failing to reveal he had invested in Twitter by March 24 as required under federal law.
