Musk seeks to end lawsuit over late disclosure of Twitter stakePosted On: Jan. 31, 2023 10:56 AM CST
(Reuters) — Elon Musk asked a U.S. judge to throw out a lawsuit claiming that his delayed disclosure of a large stake in Twitter Inc. defrauded shareholders who sold Twitter stock at artificially low prices because they were kept in the dark.
In the federal court case in Manhattan, investors accused Mr. Musk, who bought Twitter for $44 billion in October, of waiting 11 days past a U.S. Securities and Exchange Commission deadline the previous March to disclose he had bought 5% of its stock.
The shareholders said Mr. Musk saved more than $200 million by adding to his holdings — while quietly meeting with Twitter executives about his plans for the social media company — before finally revealing a 9.2% stake.
In a Monday night filing, Mr. Musk said investors in the proposed class action had no independent right to obtain damages under the SEC disclosure rule and could not show that all class members actually relied on his silence before trading.