Twitter investors sue Elon Musk for stock 'manipulation' during takeover bid

Accused of delaying stake disclosure

Valeria Martinez
clock • 1 min read

Twitter investors have sued billionaire Elon Musk, accusing him of manipulating the company's share price downwards by delaying disclosure of his investment in the firm.

In their court rulings, the shareholders claimed that Elon Musk saved $156m by failing to report that he had purchased more than 5% of Twitter before March 14. According to the lawsuit, filed on Wednesday, local time in San Francisco Federal Court, Musk continued to buy stock after that and eventually announced in early April that he held 9.2% of the company. "By delaying the disclosure of his Twitter interest, Musk participated in market manipulation and purchased Twitter stock at an artificially low price," said the investors, led by Virginia resident William Heresniak. The inves...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Investors take group action against RL360 over collapsed funds

Investors take group action against RL360 over collapsed funds

Claim brought to Isle of Man to seek compensation for losses

Isabel Baxter
clock 27 March 2025 • 2 min read
Watch Professional Adviser's Working Lunch on Baillie Gifford's Scottish Mortgage trust - A World of Opportunities

Watch Professional Adviser's Working Lunch on Baillie Gifford's Scottish Mortgage trust - A World of Opportunities

Catch up on the discussion

Professional Adviser
clock 25 March 2025 • 1 min read
Other investing strategies are available: Performance chasing has served well despite risks

Other investing strategies are available: Performance chasing has served well despite risks

'Perhaps not surprisingly in such momentum-driven markets, performance chasing came out top'

Laith Khalaf
clock 24 March 2025 • 4 min read