Elon Musk Is In Litigation With Twitter Shareholders This Time

Elon Musk, who announced last week that he bought 9.2% of Twitter for approximately 3 billion dollars, and then announced that he would join the board of directors and then give up, caught the eye of many investors because of these moves. One of these investors, Marc Bain Rasella, who owns a stake in Twitter, appeared in Manhattan Federal Court yesterday. He made a complaint, of which he was somewhat justified.

Rasella to announce Musk’s share purchase in her complaint that she requested a jury trial against Musk violated the statutory deadline stressed. In the complaint, Musk’s approximate timeout He earned an additional $143 million expressed. It was also stated that the complaint aims to represent all investors who sold Twitter shares between March 24 and April 1. Let’s take a look at the dimensions of this complaint and Musk’s purchase.

First, let’s remember Musk’s purchase:

Table showing how many shares Elon Musk bought, when and for how much (SEC)

Elon Musk reported to the US Securities and Exchange Commission (SEC) on April 4 that he bought Twitter shares. In another document shared by the SEC, it could be seen how many shares Elon Musk bought from Twitter on which date. According to this document, Musk will run from January 31, 2021 to April 4 He had bought shares on 43 different days.

Musk was supposed to report his purchase, but didn’t:

According to US law, after Elon Musk reached a 5% stake in Twitter shares Notify SEC within 10 days was obliged to. But Elon Musk made this statement 11 days later. Elon Musk’s share for the past 11 days It had already gone from 5% to 9.2%. In other words, Musk kept Twitter shares for 11 days. continued to collect cheap.

To give you an idea of ​​how much Elon Musk has made with this tactic, let’s take a look at the adventure of Twitter stocks since the beginning of the year. Share prices, which started the year at $42, hovered in the $43-$33 range between January 31st and April 4th, when Musk collected the shares. The region where the shares are most concentrated It was in the $38-$33 range. With the announcement on April 4, Twitter’s share price was over $50. Elon Musk, 3 months total It had collected close to 73.5 million shares…

In the aforementioned legal application, the investor generally states that if Musk announces his shares on time, those who sell their Twitter shares. since he wouldn’t have made such a mistake. he complains. The point is, the investor who made a loss by getting the wrong (perhaps the right for the time) stock of Twitter stocks also had Musk break the law. will use it as an opportunity to recoup the loss.. What kind of punishment is requested for Musk in the complaint has not been specified for the time being.