Elon Musk always seems to be up to something that lands him in headlines, be it social media antics or the unveiling of a new, futuristic endeavor from Tesla or SpaceX, he knows how to keep his name in peoples' mouths.
That's not always to his benefit, though, as he's recently landed himself in a little bit of trouble after buying a sizable chunk of Twitter shares, trouble that has him staring down a lawsuit.
The billionaire entrepreneur recently bought a big chunk of shares in his social media platform of choice, Twitter, and he now owns about 9.2% stock in the company.
However, some other Twitter investments aren't too happy with the way he went about it, and he's now being sued over the matter.
See, the SEC has a rule stating that large purchases of stock, anything over 5% of a company, must be immediately reported and filed. Musk didn't report his large purchase until ten days after the fact.
Rasella claims he lost money due to Musk withholding that info from the appropriate board, as he was selling shares during the period between Musk's purchase and the announcement. After the news broke, Twitter shares rose 27% in price, netting the man quite the profit as seen above.
The suit states, "Investors who sold shares of Twitter stock between March 24, 2022, when Musk was required to have disclosed his Twitter ownership, and before the actual April 4, 2022 disclosure, missed the resulting share price increase as the market reacted to Musk’s purchases and were damaged thereby."
Instead, he's been spending his time running Twitter polls asking the people what changes they'd like to see come to the site, such as the ever-debated edit button.
Musk was originally set to join Twitter's board of directors after his large acquisition, but it seems he's backed out, though no one knows why. Some guess it's so he can purchase even more of the company, which wouldn't have been allowed had he joined.
h/t: Gizmodo
