Shareholder Lawsuit Accuses Elon Musk and Twitter of Late Disclosures, False Statements and Market Manipulation

Complaint claims Musk’s late disclosure saved him $156 million

Twitter shareholders are suing Twitter and Elon Musk over the late disclosure of several facts relating to the acquisition, as well as Musk’s tweets presenting false statements and manipulating the stock market.

In a class action lawsuit filed by shareholder William Heresniak on Wednesday in the Northern District of California, the complaint claims Musk and Twitter are violating California corporations code in the ongoing acquisition expected to close later this year. This adds to another shareholder’s lawsuit filed in April over Musk’s late disclosure of his stake in Twitter. Musk, CEO of Tesla and SpaceX, has a pending deal to buy the social media company for $44 billion but recently said the acquisition was on hold.

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Antoinette Siu

Media and Tech Reporter • • Twitter: @antoinettesiu