Investors say Musk saved $ 156 million because he did not disclose that he bought more than 5% of Twitter by March 14th.
After that, he continued to buy shares and finally revealed in early April that he owns 9.2% of the company.
“By postponing the disclosure of his participation in Twitter, Musk became involved in market manipulation and bought Twitter shares at a low artificial price,” said investors, led by Virginia shareholder William Heresniak.
Musk allegedly bought the shares, the lawsuit alleges insider trading information based on private conversations with board members and directors, including former CEO Jack Dorsey, a longtime friend of Musk, and co-CEO Silver Lake. Egon Durban, a Twitter board member whose company previously invested in SolarCity before Tesla bought it, according to CNBC.
The lawsuit comes after Musk, the owner of electric car maker Tesla, said he plans to take over Twitter for $ 44 billion.
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