A Twitter shareholder is suing Elon Musk for not disclosing his stake in the company. Marc Bain Rasella filed the suit alleging that Musk had violated securities law by not disclosing his 5% stake in TWTR as per regulation. The Tesla CEO had accumulated this stake by 14 March (blue vertical) which required a public disclosure not more than ten days later, 24 March (green vertical). Instead, Musk only disclosed his position on 4 April (black vertical), by which time he had acquired more than 9% of the social media company.
According to Rasella, this lack of disclosure allowed Musk to accumulate TWTR stock at a relatively low price. However, once Musk filed the position, TWTR 's price jumped 27% to $49.97, implying that investors who sold before had been disadvantaged by the late disclosure.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.