Elon Musk seeks to dismiss a lawsuit filed by former Twitter shareholders who claim he delayed disclosing his substantial ownership stake in the social media company in early 2022.
Musk argues that "all indications" suggest any delay was unintentional.
In a recent filing in Manhattan federal court, Musk dismissed the idea that he aimed to deceive shareholders unaware of his 9.2% Twitter stake, which led them to miss out on significant gains when they sold their stock, Reuters reports.
Investors allege that Musk and his wealth manager, Jared Birchall, were aware of the U.S. Securities and Exchange Commission (SEC) rule requiring disclosure by March 24, 2022, after Musk acquired 5% of Twitter.
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They claim he waited an additional 11 days, allowing him to purchase more shares at lower prices, saving over $200 million. Twitter's stock surged 27% on April 4, 2022, following Musk's announcement of his 9.2% stake.
Musk stated in his filing that he initially planned to reveal his Twitter stake at the end of 2022 but did so promptly upon realizing his misunderstanding of the SEC rule. "This is not a scheme to defraud," Musk asserted.
He also denied allegations that a Morgan Stanley banker helped him develop a strategy to amass Twitter shares secretly.
The investors, led by an Oklahoma public pension fund, have not commented on Musk's latest filing.
Musk acquired Twitter, now known as X, for $44 billion in October 2022. The SEC is also investigating his Twitter stock purchases.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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