Twitter gained 25% after Elon Musk bought shares. Tesla CEO becomes Twitter’s largest shareholder with 9.2% stake, valued at 73.5 million. A Twitter shareholder named Marc Bain Rasella sued Elon Musk. The reason for the lawsuit is that some shareholders suffered financial losses because Elon Musk announced late to the Securities and Exchange Commission that he bought shares from Twitter.
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Every move of Elon Musk affects Twitter shares!
Elon Musk was sued by a shareholder named Marc Bain Rasella because he announced late that he bought shares from the social media platform Twitter and kept the value low. Twitter shares rose from $39.31 on April 1 to $49.97 on April 4. In other words, there was an increase of 27%.
Unconsciously, many shareholders sold their shares at a low price. In addition, some investors could not earn the money they would have earned due to the late arrival of the announcement. According to the Securities Act, Elon Musk was required to announce that he bought the shares on March 24, 10 days after he bought it. But the businessman made the necessary statement on April 4.
According to Blooemberg, Rasella represents the group of investors who sold their Twitter shares while Elon Musk did not announce that he was buying shares. Elon Musk, who is at the focal point of the subject, has not yet made a statement.
What do you, our readers, think about this issue? Do you think Elon Musk kept the shares low on purpose? You can express your thoughts in the comments section or on the SDN Forum.