Twitter Shareholder filed a lawsuit against Elon Musk for not disclosing the stake in Company. Recently Musk claim to be the biggest shareholder of the company with 9.2 percent on giant social media platform Twitter.

Highlights

As per the suggestion, it is assumed that Musk could push Twitter to make some changes
The lawsuit contains some unspecified compensatory and punitive damages
Musk’s lawyer has not made any comment over the lawsuit

Also Read: Elon Musk's Shares are the Highest on Twitter among other shareholders

As per the lawsuit, investors must disclose about the strake after increasing over 5 percent of a company.

A lawsuit was filed against the giant Technology Investor Elon Musk by the former shareholder of the company, who claim that they missed out on the recent run-up in its stock price because he waited too long to disclose his share in a giant social media company.

Under federal law, Elon Musk was booked and in the lawsuit, he was said to be “materially false and misleading statements and omissions,” because he failed to reveal his investments on Twitter.

Twitter shares raised by 27 percent on April 4 to $49.47 (Rs. 3,800) which was earlier $39.31 (Rs. 2,990) after Elon Musk disclosed his stake in the company.

Twitter’s former shareholder led by Marc Rasella said Elon Musk defrauded the buying of company shares at low prices as he has not informed the company about his stake in the company.

The lawsuit seeks unspecified compensatory and punitive damages. A lawyer for musk recently denied any comment on the lawsuit.

If we talk about the rules for the above condition then the US security law requires investors to disclose within 10 days when they have acquired 5 percent of a company. Musk should have been informed the company on 24 March.

Some analysts also have warned the company that Elon Musk also could push Twitter towards some changes that could change the working of the company.

The case name is Rasella v Musk, US District Court and it is entertaining by the Southern District of New York, No. 22-03026.

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