(Reuters) — Elon Musk asked a U.S. judge to throw out a lawsuit that claimed his delayed disclosure of a large stake in Twitter Inc. defrauded shareholders who sold Twitter shares at artificially low prices because they were kept in the dark.
In the federal court case in Manhattan, investors accused Musk, who bought Twitter for $44 billion in October, of waiting 11 days after a US Securities and Exchange Commission deadline in March to disclose that he had bought 5% of its shares.
Shareholders said Musk saved more than $200 million by adding to his holdings — while quietly meeting with Twitter executives about his plans for the social media company — before finally revealing a 9.2% stake.
In a filing Monday night, Musk said investors in the proposed class action had no independent right to recover damages under the SEC̵
7;s disclosure rule and could not show that all class members actually relied on his pre-trade silence.Source link
