Elon Musk.Photo: Theo Wargo/Getty
Elon Musk’s connection to Twitter is the subject of a new lawsuit.
Musk — thewealthiest personon the planet — recentlypurchased a 9.2 percent stakein the social media platform, according to aU.S. Securities and Exchange Commission documentfiled on April 4. That makes him the company’s largest shareholder.
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By delaying the disclosure, Musk was able to buy more shares at a lower price, and cost other investors potential profits, Rasella claims.
Representation for Musk did not immediately respond to PEOPLE’s request for comment.
Rasella’s court docs say the suit was filed on behalf of Twitter investors who sold their shares from March 24 to April 1, except for Musk, his family and affiliates.
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The suit alleges Musk “knew or recklessly disregarded” his obligation to notify the regulators.
The tech mogul, who has more than 80 million Twitter followers, made his investment in Twitter after accusing the company of “failing to adhere to free speech” practices and giving “serious thought” to starting his own social media site.
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Though Musk is now Twitter’s largest shareholder, he decided not to join the company’s board following his investment.
“Elon’s appointment to the board was to become officially effective 4/9, but Elon shared that same morning that he will no longer be joining the board,” Twitter CEO Parag Agrawalsaid in a tweet. “I believe this is for the best. We have and will always value input from our shareholders whether they are on our Board or not. Elon is our biggest shareholder and we will remain open to his input.”
source: people.com
