Judge Andrew Carter in the U.S. District Court in Manhattan said that shareholders presented sufficient evidence that billionaire Elon Musk had intended to commit fraud. Specifically, Musk is accused of providing false information to regulators, posting misleading tweets about Twitter's future and quietly building a stake in the company.
The court dismissed several other claims in the class action, but has not yet ruled on the merits of the case. The Securities and Exchange Commission (SEC) is also suing Musk for delayed disclosure.
According to the lawsuit, led by the Oklahoma Firefighters Pension and Retirement System, Musk ignored the SEC’s March 24, 2022, deadline to disclose his purchase of a 5% stake in Twitter. Instead, he waited 11 days to disclose his 9.2% stake.
The plaintiffs claim that this action saved Musk more than $200 million and caused them damages because they sold Twitter shares at an artificially low price. Musk then bought Twitter in full for $44 billion in October 2022.
In a 43-page ruling, Judge Andrew Carter made key observations about the case involving billionaire Elon Musk and his purchase of Twitter shares.
Accordingly, Musk's announcement of holding 9.2% of Twitter shares could be considered misleading, because this information makes shareholders believe that Musk is only a passive investor and has no intention of buying the company.
In addition, the Court also found that shareholders have grounds to sue Musk over two controversial tweets on March 26, 2022. In them, Musk "hinted" about building a competitor to Twitter and "mockered" the proposal to buy Twitter.
Musk's lawyers, however, argued that the tweets refuted any allegations of fraudulent intent. But Judge Carter said the plaintiff's argument was "more persuasive."
Twitter shares reportedly jumped 27% on April 4, 2022, shortly after Musk announced his 9.2% stake.
Source: https://vtcnews.vn/ty-phu-elon-musk-bi-cao-buoc-lua-dao-co-dong-twitter-ar934496.html
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