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Lawsuit: X investors sued Elon Musk in April 2022
Elon Musk has asked a federal judge in New York to dismiss a lawsuit filed by X shareholders.
Investors in the platform formerly known as Twitter sued the billionaire in April 2022 after he revealed he had acquired a 9.2 percent stake in the company.
Under federal securities laws, Musk was required to disclose his stake in Twitter within 10 days of it exceeding 5 percent of the company’s stock.
But it filed its application with the Securities and Exchange Commission (SEC) about three weeks after crossing that threshold in March 2022.
The shareholders allege that Musk and his wealth manager “conspired to violate Musk’s disclosure obligations so that they could secretly build a massive position in Twitter at artificially low prices while misleading investors.”
But Musk’s lawyers argued in a new filing this week that the delay was a simple mistake and that the shareholder class-action lawsuit should be dismissed.
They argue that Musk and his wealth manager misunderstood the rules. After learning of the error, they say Musk filed the request the next business day.
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