Developing News...

2024 Music Trends: Global Streaming Soars, Latin Music Surges, and Physical Albums Thrive

As we reach the halfway point of 2024, several...

Small Japanese Manufacturers Face Tough Choices as Government Shifts Policy on Business Failures

For much of its 72-year history, Hitoshi Fujita's company...

J.D. Vance’s Transformation: From Trump Critic to Loyal Running Mate

Eight years ago, leading up to the 2016 presidential...

Shannen Doherty, Iconic ‘Beverly Hills, 90210’ Star, Passes Away at 53 After Battle with Cancer

Shannen Doherty, renowned for her role in "Beverly Hills,...

Elon Musk Seeks Dismissal of Lawsuit by Former Twitter Shareholders

Elon Musk has moved to dismiss a lawsuit filed by former Twitter shareholders, who accuse him of delaying the disclosure of his significant ownership stake in the social media platform in early 2022. According to Musk, the delay was an unintentional mistake rather than an attempt to deceive.

In a late Wednesday filing in Manhattan federal court, Musk argued that it was implausible to believe he intended to defraud shareholders who were unaware of his 9.2% stake in Twitter, causing them to miss out on significant gains when they sold their stock.

The investors in the proposed class action claim that Musk, along with his wealth manager Jared Birchall, knowingly violated a U.S. Securities and Exchange Commission (SEC) rule requiring disclosure of his 5% stake by March 24, 2022. Instead, Musk waited an additional 11 days, during which time he acquired more shares at lower prices, allegedly saving over $200 million. Twitter, now rebranded as X, saw a 27% increase in its stock price on April 4, 2022, following Musk’s announcement of his 9.2% stake.

Forbes magazine lists Musk as the world’s wealthiest individual. He also heads several other companies, including Tesla, the electric car manufacturer.

In his court filing, Musk explained that he had planned to disclose his Twitter stake by the end of 2022 but acted promptly upon realizing he had misunderstood the SEC’s disclosure requirements. “This is not a scheme to defraud,” Musk stated. “All indications—including those in the pleadings—point to a mistake.”

Musk also refuted the investors’ allegation that a Morgan Stanley banker helped create a trading strategy to acquire Twitter shares covertly.

The investors, represented by an Oklahoma public pension fund, have not responded to requests for comment.

Musk completed the purchase of San Francisco-based Twitter for $44 billion in October 2022. The SEC has also investigated his Twitter stock acquisitions.

Last September, U.S. District Judge Andrew Carter declined to dismiss an earlier version of the lawsuit, citing evidence that Musk was aware of the SEC disclosure rules and had testified about them under oath.

The case is Oklahoma Firefighters Pension and Retirement System v. Musk et al, U.S. District Court, Southern District of New York, No. 22-03026.

Newsletter

Discover

Small Japanese Manufacturers Face Tough Choices as Government Shifts Policy on Business Failures

For much of its 72-year history, Hitoshi Fujita's company...

J.D. Vance’s Transformation: From Trump Critic to Loyal Running Mate

Eight years ago, leading up to the 2016 presidential...

Shannen Doherty, Iconic ‘Beverly Hills, 90210’ Star, Passes Away at 53 After Battle with Cancer

Shannen Doherty, renowned for her role in "Beverly Hills,...

Discover More

Charles Wright
Charles Wrighthttps://devstory.org.za
Charles Wright embarked on his journalism career two decades ago, quickly making a name for himself with his insightful reporting and keen eye for detail. His dedication to uncovering the truth and presenting well-researched stories has earned him a reputation as a reliable and respected journalist. Over the years, Charles has covered a wide range of topics, from local news and politics to international affairs and in-depth investigative pieces. Throughout his career, Charles has demonstrated exceptional skills in investigative journalism, political reporting, and feature writing. His ability to dissect complex issues and present them in a clear, engaging manner has won him numerous accolades and the trust of his readers. Charles is known for his commitment to unbiased reporting and his relentless pursuit of the facts, which has made him a cornerstone of the journalistic community.