Technology billionaire Elon Musk has been sued after buying more than 9 percent of the shares of the social media Twitter, DPA reported.
The purchase made him the largest external shareholder in the company and after its announcement the share price rose by more than 27 percent.
But Musk now faces a class action lawsuit filed by investors who say the late announcement of Musk’s stake in the platform cost them money and saved Musk about $ 143 million.
Judicial documents filed in New York allege that Musk was required to notify the Securities and Exchange Commission within 10 days. on March 24, for the purchase of 5 percent or more of the shares of Twitter.
However, the lawsuit claims that Musk did not warn the commission until April 4, when he had already accumulated more than 9 percent of the shares. The lawsuit alleges that Musk continued to buy shares on Twitter at low prices until the time he announced the purchase.
Investors who sold shares during this period were harmed.
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