Twitter investor, Marc Rasella, has accused the SpaceX founder and the world’s richest man, Elon Musk of making him lose money through “misleading statements” about his purchase of a large stake in Twitter on Tuesday.
The plaintiff, who seeks class action status for his case on behalf of investors who sold their Twitter stock between late March and early April, claims that he would not have sold his shares at “artificially deflated prices” had Musk made his own purchase public sooner, as required by US federal trade laws.
The law demands any investor surpassing a 5% stake in any company to notify the Securities and Exchange Commission (SEC) within 10 days. According to the lawsuit, Musk surpassed this threshold on March 14 and should have notified the SEC on March 24 but did not make the move public until April 4, when he said he bought 9.2% of Twitter shares in a SEC filing.