As you know, Elon Musk once again occupied the media scene in early April 2022. Indeed, the billionaire created a surprise by announcing his entry into the Twitter capital with a huge investment of $ 2.7 billion. now in hand 9.2% of social networkTesla’s boss went from a simple user to one of Twitter’s leaders in a matter of days.
After this announcement, What caused Twitter’s share price to explode in the stock marketElon Musk has passed and approved the arrival of the bluebird to the board of directors. Only after 24 hours the situation is reversed. Finally, the SpaceX founder states that he will not be on Twitter’s board after he proposes to turn Twitter’s headquarters into a shelter for the homeless.
As you can see, Elon Musk, like other shareholders, had to drive social network managers crazy. One of them decided on this matter. File a complaint against Starlink boss. In this complaint to stock market regulators, Elon Musk is accused of failing to comply with legal deadlines to formalize Twitter’s entry into the capital.
Elon Musk caused other shareholders to lose money
Disclosures: Tesla’s leader began massively buying Twitter shares in January 2022. As of March 14, Elon Musk held 5% of the social network’s capital. However, as per the rules set by the Securities and Exchange Commission (SEC), any new investor who owns 5% of a company, It publicly announces its participation within 10 days.
So Elon Musk should have formalized his entry into the Twitter capital on March 24 at the latest. But it did so much later, on April 4, 2022. If this delay does not seem particularly significant at first glance, would actually let Elon Musk make $156 million. According to the complaint, these gains were made at the expense of other shareholders, who were unable to capitalize on the positive effects of Musk’s capitalization on Twitter’s share value.
“Investors who sold Twitter stock between March 24, 2022, when Mr. Musk had to disclose his Twitter stake, and before the actual announcement on April 4, 2022, missed the rise in share price that resulted in the market’s reaction to Mr. Musk. They bought it and suffered as a result.” petitioner claims. Moreover, it guarantees what Elon Musk did.”Significantly false and misleading statements and omissions for failing to disclose to investors that it has purchased a 5% stake in Twitter when necessary.”
Source : Engadget
