Elon Musk has been sued by Twitter Inc. investors, claiming he manipulated the company’s stock price downward when he mounted a $44 billion takeover bid for the social media platform.
The investors said billionaire Musk saved himself $156 million by failing to disclose that he had purchased more than five per cent of Twitter by March 14.
They asked to be certified as a class and to be awarded an unspecified amount of punitive and compensatory damages.
The investors said Musk continued to buy the stock after that, and ultimately disclosed in early April that he owned 9.2 per cent of the company, according to the lawsuit, filed on Wednesday in San Francisco federal court.