Elon Musk Gets Lawsuit from Twitter Investor for Hiding his 5% Stake on Twitter Last January

Elon Musk is now facing a lawsuit filed against him by fellow Twitter investors, and it is because of the CEO's actions in early January regarding his shares from the company. There have been massive talks regarding Musk and his stakes on Twitter since it became public several weeks now, and many people look closely at this matter.

Elon Musk Faces Lawsuit from Twitter Investor Regarding Shares

Marc Bain Rasella is the Twitter investor that filed a lawsuit against the famous Tech CEO Elon Musk, and the case borders on Musk's failure to disclose that he already owned a five percent stake in the company. Musk's stake extends to early January 2022, meaning that there was a period of two to three months that the CEO allegedly held it.

Rasella said that he filed the lawsuit on behalf of all the investors involved in the company, particularly those that sold their shares from March 24 to April 1 this year. The alleged breach by Musk is a clear violation of the Securities and Exchange Commission's rules to submit a filing ten days after its purchase if it exceeds the five percent threshold.

Twitter Shares: Musk Did not Disclose it Last January

According to Tech Crunch, the lawsuit heavily targets the tech CEO for his actions over the shares he owned from Twitter, mainly as it is a massive percentage of 9.2 percent stakes. There were no other investors that took the time or effort to file the lawsuit apart from Rasella, but he claimed that it was on behalf of those involved in the company and its shareholders.

Elon Musk and Twitter

Twitter made several noises these past few weeks, and it is because Elon Musk took it to the social media about his many ventures and plans for the Big Tech company. Recently, Musk created a poll regarding turning Twitter's headquarters into a homeless shelter for people that significantly needs it, mainly as workers do not use it anymore.

The main takeaway here is not the arrival of Musk on Twitter's board, but it is the many policies that may change, says the workers, fearing that this new thing in the company may sway from its focus. Since Musk took his position as a known shareholder in the company, the CEO talked about many features on Twitter, including the edit button.

The arrival of a new entity may be threatening to others, but if the alleged appearance of Musk on Twitter is something that he hid to gain massive stocks, then it may be an enormous dispute among investors. Now, the courts will look into the evidence presented by the investor, and it is something that will heavily involve Musk and Twitter.

This article is owned by Tech Times

Written by Isaiah Richard