Elon Musk, CEO of Tesla and SpaceX,
is seeking to dismiss a lawsuit filed by former Twitter
shareholders.
The controversy centers around Musk's acquisition of a 9.2 stake
in Twitter.
SEC regulations require him to disclose his ownership when exceeding
5%
by March 24th, 2022. Musk didn't make this disclosure until
April 4th,
2022, eleven days after the deadline.
This.
Wishes more shares at a lower price,
saving over $200 million after disclosure.
Twitter stock prices surged by 27%.
Musk argues that the delay was unintentional,
resulting from a misunderstanding of SEC rules rather than an
attempt to defraud.
He contends there was no scheme to deceive shareholders.
The lawsuit initiated by an Oklahoma public pension fund and
other investors.
This misses Musk explanation. They argued that Musk and his
wealth manager were fully aware of the disclosure requirements.
Adding another layer to the case,
the lawsuit mentions an unnamed Morgan Stanley banker allegedly helping
Musk accumulate.
But if shares discreetly must denies his claim in his
legal response.
U.S. District Judge Andrew Carter previously denied an attempt to
dismiss an earlier version of the lawsuit,
citing sufficient evidence that Musk was aware of the disclosure
requirements.
The case continues to unfold in Manhattan federal court,
with responses from plaintiffs lawyers pending.
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