Musk's recent investment in the micro-messaging service is in trouble.
A class action lawsuit has been filed against Musk, accusing him of being late to disclose his recent purchase of Twitter shares. The damage was done to other investors who missed out on potential gains after the news of the world's richest man buying it.
The lawsuit states that Musk had an obligation to file a Schedule 13 with the SEC. Musk did not file a Schedule 13 with the SEC within the required time and instead continued to accumulate shares in the company before finally filing a Schedule 13 on April 4, 2022.
According to the lawsuit, Musk had a reason to file the Schedule 13 late, as he was able to purchase more shares of Twitter at a lower price.
On March 25th, Musk launched a poll asking his followers if he wasrigorously adhering to the principle that free speech is essential to a functional democracy.
He became the company's largest individual shareholder a few days later. The appointment of Musk to the Board of Directors was never materialized, though he continued to suggest changes at the company as if he were the CEO.
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