![]() ![]() “I assume the SEC is well aware of what he did,” Walker said. Jacob Walker, one of the lawyers that filed the lawsuit against Musk, told The Associated Press that he hadn’t reached out to the Securities and Exchange Commission about Musk’s alleged violations about the disclosure of his Twitter stake. In a regulatory filing Monday, Musk disclosed he may increase his stake after backing out of an agreement reached last week to join Twitter’s board of directors. Musk spent about $2.6 billion on Twitter stock - a fraction of his estimated wealth of $265 billion, the largest individual fortune in the world. The lawsuit is seeking to be certified as a class action representing Twitter shareholders who sold shares between March 24 and April 4, a process that could take a year or more. Musk, meanwhile, was able to continue to buy shares that traded in prices ranging from $37.69 to $40.96. That revelation caused Twitter’s stock to soar 27 percent from its April 1 close to nearly $50 by the end of April 4’s trading, depriving investors who sold shares before Musk’s improperly delayed disclosure the chance to realize significant gains, according to the lawsuit filed on behalf of an investor named Marc Bain Rasella. Musk didn’t make the required disclosure until April 4. The lawsuit alleges that by March 14, Musk’s stake in Twitter had reached a 5 percent threshold that required him to publicly disclose his holdings under U.S. That represents a 9.1 percent stake in Twitter. Musk, best known as CEO of the electric car maker Tesla, held 73.1 million Twitter shares as of the most recent count Monday. 31 and then continued to accumulate more shares on nearly every single trading day through April 1. Musk’s regulatory filings show that he bought a little more than 620,000 shares at $36.83 apiece on Jan. READ MORE: SEC claims authority to subpoena Elon Musk over tweets That strategy, the lawsuit alleges, hurt less wealthy investors who sold shares in the San Francisco company in the nearly two weeks before Musk acknowledged holding a major stake. Instead, according to the complaint, Musk didn’t disclose his position in Twitter until he’d almost doubled his stake to more than 9 percent. The complaint in New York federal court accuses Musk of violating a regulatory deadline to reveal he had accumulated a stake of at least 5 percent. But Twitter grew more receptive to the bid after Musk said last week that he has the funding to take Twitter private.SAN FRANCISCO (AP) - Elon Musk’s huge Twitter investment took a new twist Tuesday with the filing of a lawsuit alleging that the colorful billionaire illegally delayed disclosing his stake in the social media company so he could buy more shares at lower prices. The company’s board went so far as to adopt a so-called poison pill to thwart Musk’s proposal. Twitter was largely expected to rebuff Musk’s offer. Shares of Twitter climbed to $51.80, up 5.9% on the day, in late afternoon trading. “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans.” “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” Musk said. Musk has secured $25.5 billion of fully committed debt and margin loan financing and is providing approximately $21 billion equity commitment, Twitter said. “The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.” “The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing,” said Bret Taylor, Twitter’s independent board chair. (TSLA) chief executive met to hash out details of the proposal. ![]() The news comes one day after Twitter’s board of directors and the Upon completion of the transaction, expected, sometime this year, Twitter will become a privately held company.
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