Elon Musk is being sued because he didn’t make public he had bought a major stake in Twitter.
The Tesla and SpaceX billionaire, who recently became the largest shareholder in the social media giant, is facing action from investors in a New York federal court.
This comes after Musk bought 9.2 per cent in Twitter earlier this month, but rejected a seat on its board leading to speculation he is considering a hostile takeover. When asked if he would buy more, he said he didn’t have any plans to but could grow the stake “at any time”.
It was revealed a class action lawsuit was filed against Musk, over claims he breached trade laws requiring investors to make it public, when they surpass a five per cent stake in a firm – within ten days.
After purchasing them on 14 March, according to the Guardian, he did not notify the Securities and Exchange Commission until 4 April.