On Friday, the American judge denied Elon Musk’s request for the dismissal of the action accused of introducing former Twitter shareholders. He claimed that Musk was waiting for too long to reveal his initial investment on Twitter (now called X), which could be fraudulent.
Judge Andrew Carter said on Manhattan that shareholders had given enough evidence to suggest that Musk intentionally mislead them. He claims that he used misleading regulatory submission, tweets about the future of Twitter and the strategy “quietly” to build his share on Twitter. Carter rejected some other claims in the proposed class action. He did not rule against the merit of the case.
The US Securities and Exchange Commission also sues Musk before late publication.
What did the action say?
The petitioners Oklahoma Pension and the pension system said that Musk ignored the deadline of SEC from March 24, 2022 to reveal that he bought 5% of Twitter shares and waited for another 11 days to reveal his 9.2% share of SEC.
This strategy saved Musk more than $ 200 million and damaged them because they sold Twitter shares at artificially low prices. Musk bought all Twitter for $ 44 billion in October 2022, the plaintiff added.
What did the judge answer?
In his 43 -page answer, Carter said that Muska’s publication of 9.2% of the share can be considered misleading because it indicated that he had made a “passive” investment and did not plan to buy the company.
Carter said that shareholders can also sue two tweets on March 26, 2022, where Musk said he “seriously thought” about building a opponent on Twitter, and answered a suggestion to buy Twitter and changed his birds to Doga “Ha Ha to be sick.”
Musek’s lawyers said the tweets had undermined any proposal of the fraudulent intention because they could draw attention to it on Twitter, but Carter considered the plaintiff’s arguments to be “at least convincing”.
Twitter shares rose by 27% 4. April 2022 after Musk revealed his 9.2% share.
The case is Oklahoma Pension and Retirement System v. Musk et al. Lawyers for Musk did not immediately respond to requests for comment.
(Tagstotranslate) Elon Musk
