In a public decision on Monday, US district judge Andrew Carter said shareholders in the proposed class action could try to prove that Musk intended to defraud them by waiting 11 days past a US Securities and Exchange Commission deadline to reveal he had bought 5% of Twitter's shares.
The judge in Manhattan also dismissed an insider trading claim against Musk, the world's richest person.Shareholders led by an Oklahoma firefighters' pension fund said Musk saved more than $200 million by adding to his Twitter stake and quietly talking with its executives about his plans before finally disclosing a 9.2% stake in April 2022.
Carter said he could not infer that Musk was"too busy" to comply with SEC rules if he could find time to buy Twitter shares, meet with company executives, and post online about Twitter. He also found evidence that Musk understood the 5% disclosure rule, including that he had testified about it under oath and had properly disclosed stakes in his electric car maker, Tesla, and the former SolarCity at least 20 times.Musk bought Twitter for $44 billion last October.Twitter shares rose 27% on 4 April 2022, to $49.97 from $39.31, after Musk revealed his 9.2% stake. Musk's takeover valued Twitter at $54.20 per share.In times of uncertainty you need journalism you can trust.
Source: News Formal (newsformal.com)
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