Ilan Mask News Again / Shareholders Against Mask!
Former Twitter shareholders sued Tesla electric car CEO Ilan Musk on Tuesday, according to TradeNews. They claimed to have lost the recent rise in the company’s stock price. They say Ilan Mask announced it was too late to buy a 9.2% stake in Twitter. This caused them to lose the increase in the stock price of this company.
Quoted from ReutersIn a class action lawsuit filed in Manhattan Federal Court, shareholders allege that Musk tried to spread misinformation and delete the information in order to mislead by late revealing his investment in Twitter on March 24. Disclosure of such information is part of federal law.
Shares of Twitter rose 27 percent on April 4 from $ 39.31 to $ 49.97 after Ilan Musk announced his acquisition of the San Francisco-based company. Investors saw the move as a vote of confidence from the world’s richest man.
Previous shareholders say Ilan Musk was able to buy more shares at a lower price by delaying announcing the purchase of Twitter shares. While he has tricked them into selling their shares at low prices, the case seeks unspecified compensation and criminal damages. At present, Ilan Mask’s lawyer has no opinion in this regard and Tesla is not the defendant in this case.
On what date should Mask have announced the purchase of shares?
US security law requires investors who buy a 5 percent stake in a company to declare it within ten days. In the case of Ilan Mask, this should have happened on March 24.
It was April 5 when Twitter announced that Mask would be joining the board. But this week it turned out that Ilan Mask had given up. If Mask does not enter the Twitter board, there is no limit to buying more shares. If he is a member of the board of directors, he can buy up to 14.9% of the company’s shares.
A former Twitter shareholder said he sold 35 Twitter shares on March 25-29 for $ 1,373, or about $ 39.23 per share. However, if Mask had announced the purchase of Twitter shares earlier, the price would have gone up. Ilan Mask’s fortune is currently $ 265.1 billion.