A US court on Friday denied billionaire Elon Musk’s request to dismiss a case alleging that he deceived former Twitter shareholders by failing to disclose his first investment in the social media firm, now known as X.
U.S. District Judge Andrew Carter in Manhattan said the shareholders adequately pleaded that Musk, who is now a top adviser to President Donald Trump, intended to commit fraud through an improper regulatory filing, misleading tweets about Twitter’s future, and a strategy to “silently” build his Twitter stake.
Carter rejected many additional claims in the proposed class action. He did not rule on the case’s merits. The Securities and Exchange Commission is also suing Musk for late disclosure.
Lawyers for Musk did not immediately respond to requests for comment.
Plaintiffs led by the Oklahoma Firefighters Pension and Retirement System said Musk ignored an SEC deadline of March 24, 2022 to reveal he had bought 5% of Twitter shares, and waited 11 more days before revealing his 9.2% stake in an SEC filing.
Content retrieved from: https://www.firstpost.com/world/judge-rejects-elon-musks-bid-to-dismiss-lawsuit-over-delayed-twitter-investment-disclosure-13875500.html.
