Elon Musk seeks to end lawsuit over ‘inadvertent’ late disclosure of Twitter stake |
New York, 31 january (Reuters) – Elon Musk USA filed a lawsuit alleging that the delayed disclosure of a large portion of Twitter Inc.’s judge defrauded shareholders who sold Twitter stock at an artificially low price because they were kept in the dark. cancellation asked to do.
Federal in Manhattan court investors in the case, Twitter in October 44 billion Musk, who bought the dollar USA They accused the Securities and Exchange Commission of waiting until 11 days after last March to disclose that it had bought 5% of its shares.
Shareholders, Musk social while quietly meeting with Twitter executives about his plans for the media company, deceiving stock sellers and options traders from “true value” and eventually adding to his stock without disclosing a 9.2% stake 20He said he saved more than $0 million. of their securities.
But in a filing Monday night, Musk said, offer that the investors in the class action did not have an independent right to damages under the SEC’s disclosure rules and that all class members could not show that they actually relied on his silence before trading.
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Musk, like the shareholders, is electrified car At least its stake in maker Tesla Inc (TSLA.O) and the former SolarCity Corp 20 He noted that he had disclosed it correctly and even mentioned the SEC rule to Saudi Arabia’s sovereign wealth fund. 2018While negotiating a possible investment in Tesla in .
Despite a “laundry list” of allegations of fraudulent intent, “the most compelling conclusion is that any failure to disclose was accidental,” said the world’s second-richest man.
Oklahoma Firefighters to shareholders Pension and Pension Leads the system. Katie Sinderson, one of their attorneys, declined to comment Tuesday.
Under SEC rules, once investors acquire 5% of a company 10 within the day they should announce that Musk’s investment in Twitter would be equal to last March 24.
Twitter shares surged 27% to $49.97 from $39.31 on April 4 after Musk disclosed his 9.2% stake, which investors saw as a vote of confidence in San Francisco-based Twitter.
The case is Oklahoma Firefighters Pension and Retirement System v Musk et al, US District Court, Southern District of New York, No. 22-03026.
Reporting by Jonathan Stempel in New York; Edited by Jonathan Oatis
Our standards: Thomson Reuters Trust Principles.
2023-01-31 21:56:41
Source – reuters
Translation“24 HOURS”