SEC announcements or official SEC documents

Elon Musk Seeks Judge to Dismiss Twitter Shareholder Lawsuit Over 9% Stake Disclosure Delay

Jul 10, 2024, 03:56 AM

Elon Musk is seeking to dismiss a lawsuit filed by former Twitter shareholders, arguing that his delayed disclosure of a 9% stake in Twitter was a mistake rather than an attempt to defraud investors. In a Wednesday court filing, Musk stated it was implausible to assume he aimed to defraud shareholders. The lawsuit claims Musk waited 11 days beyond the required date in March 2022 to disclose his 5% ownership, which the investors allege was a violation of SEC rules. Musk contends that all indications, including those in the pleadings, point to a misunderstanding of the SEC's disclosure requirements rather than fraudulent intent. Musk has called for the judge to dismiss the lawsuit.