Apr 14, 2022 10:55:00

Elon Musk is accused of 'delaying disclosure of Twitter stock purchase information and unfairly saving 18 billion yen'

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Tesla CEO Elon Musk, who suddenly bought 9.2% of Twitter shares and became the largest shareholder, sold Twitter shares on the grounds that he did not comply with the information disclosure obligation regarding share purchases stipulated by federal law. I was sued by an investor.

CLASS ACTION COMPLAINT FOR VIOLATION OF THE FEDERAL SECURITIES LAWS
(PDF file) https://storage.courtlistener.com/recap/gov.uscourts.nysd.578187/gov.uscourts.nysd.578187.1.0_1.pdf

Lawsuit: Musk saved $ 143 million by illegally waiting to disclose Twitter stake | Ars Technica
https://arstechnica.com/tech-policy/2022/04/lawsuit-musk-saved-143-million-by-illegally-waiting-to-disclose-twitter-stake/

On April 5, 2022, information was released that electric car maker Tesla and private space development company SpaceX founder Elon Musk bought a 9.2% stake in Twitter. With this acquisition ratio of 9.2%, he became the largest shareholder of Twitter and was temporarily appointed as a director .

Elon Musk buys 9.2% of Twitter stock and asks the largest shareholder why 'to protect freedom of speech' --GIGAZINE

However, on April 12, 2022, a group of investors who sold Twitter shares filed a lawsuit alleging that Mr. Musk violated the 'obligation to disclose information regarding the purchase of shares'.

In this case, Mr. Musk violated the rule of Article 13 of the Securities and Exchange Law of the United States that 'if you acquire 5% or more of a company's stock, you must disclose the information to the Securities and Exchange Commission within 10 days.' The content that it was done. Mr. Musk acquired more than 5% of Twitter's shares on March 12, 2022, so if you follow the above rules, you must disclose information to the Securities and Exchange Commission by March 22. bottom. However, the information was actually disclosed on April 5, and Mr. Musk was over the deadline by 14 days.

Immediately after the information that Mr. Musk acquired the shares of Twitter came out, the company's stock price soared to 27%, so if the information was disclosed at the same time as acquiring 5%, it would be 5% to 9.2%. I should have faced a sharp rise in stock prices while reaching the acquisition rate. Therefore, the Washington Post, a large letter from the United States, even reports that 'Elon Musk is suspected of intentionally concealing the information that he acquired the shares of Twitter to avoid a sharp rise in stock prices,' according to the same paper's calculation. And the amount of savings from this act is as much as 156 million dollars (about 19.2 billion yen).

The proceedings were calculated by the plaintiffs with the content that 'As a result of Mr. Musk's concealment of information, he sold the stock without getting the information that the stock price of Twitter will rise, so please compensate for the damage amount.' Mr. Musk's savings are 143 million dollars (about 18 billion yen). The plaintiffs have not disclosed the amount of damage they have suffered, but are seeking 'compensatory and disciplinary damages' from Mr. Musk.