Make Kitco Your Homepage

Musk sued by Twitter investors for delayed disclosure of stake

Kitco News

NEW YORK, May 26 (Reuters) - Billionaire Elon Musk was sued by Twitter Inc (TWTR.N) investors for delayed disclosure of his stake in the social media company in a complaint filed on Wednesday in California federal court.

The investors said Musk saved himself $156 million by failing to disclose that he had purchased more than 5% of Twitter by March 14. He continued to buy stock after that, and ultimately disclosed in early April that he owned 9.2% of the company.

"By delaying his disclosure of his stake in Twitter, Musk engaged in market manipulation and bought Twitter stock at an artificially low price," said the investors, led by Virginia resident William Heresniak.

The suit comes after Musk, the owner of electric carmaker Tesla Inc (TSLA.O), said he planned to take over Twitter for $44 billion.

Reporting by Luc Cohen in New York Editing by Chizu Nomiyama
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.