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.
