The New York Post reported:
Billionaire Elon Musk was sued by Twitter investors for delayed disclosure of his stake in the social media company in a complaint filed on Wednesday in California federal court.
The investors said Musk saved himself $156 million by failing to disclose that he had purchased more than 5% of Twitter by March 14. He continued to buy stock after that, and ultimately disclosed in early April that he owned 9.2% of the company.
“By delaying his disclosure of his stake in Twitter, Musk engaged in market manipulation and bought Twitter stock at an artificially low price,” said the investors, led by Virginia resident William Heresniak.
Elon Musk’s initial Twitter stock buy is under FTC scrutiny over possible failure to report the purchases to antitrust regulators, according The Information.
Musk’s $44 billion purchase of Twitter is not under review over antitrust concerns.
However Musk’s 9% stake is being scrutinized, but is not currently under official review – YET.