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IPFS News Link • Courtroom and Trials

Elon Musk Sued by Twitter Investors Over Late Disclosure

• www.hollywoodreporter.com, Winston Cho

Twitter investors who sold their shares in the 11 days that Elon Musk was late in notifying financial regulators that he'd acquired a considerable stake in the company have sued the Tesla CEO. They claim that Musk's omission saved him roughly $143 million, while they missed out on significant profits when Twitter shares skyrocketed in light of the news.

"Defendant had the obligation, ability, and opportunity to prevent the issuance of the false statements and omissions alleged herein," reads the proposed class action filed Tuesday in New York federal court. "Because of his position as a 5% owner in Twitter, and access to material non-public information available to himself but not to the public, Defendant Musk knew that the adverse facts specified herein had not been disclosed to and were being concealed from the public and that the omissions being made were false and misleading."


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