Tesla boss Elon Musk is being sued by former Twitter shareholders. In a class action lawsuit filed in federal court in Manhattan, shareholders allege that Musk made “false and misleading statements and omissions.” The Tesla founder failed to disclose until March 24 that he had invested in Twitter. In doing so, he acted against the provisions of the US Securities Act.
The lawsuit seeks unspecified damages. As shareholders say, the delayed disclosure has allowed Musk to buy more Twitter stock at lower prices while enticing shareholders to sell at “artificially inflated” prices.