Everyone’s second-favorite SEC is back to rain on Elon Musk’s parade.
The CEO was back in the headlines on Tuesday after a federal securities class-action lawsuit was filed against Musk, alleging that he failed to report his purchase of Twitter stock ($TWTR) to the SEC in a required window of time — costing investors with paper hands plenty of dough.
According to NPR Tech’s Bobby Allyn, “Twitter shareholder sues Elon Musk in federal securities class action lawsuit, alleging that he ‘made materially false and misleading statements and omissions by failing to disclose to investors’ his ownership stake in Twitter.'”
The investor, Marc Bain Rasella, is taking up arms with Musk on behalf of shareholders that sold their stock prior to the gold rush that ensued when news broke of Twitter’s newest majority shareholder.
And also that he might’ve kept the news under wraps to purchase more stock at a lower price.
The Tesla CEO filed an official notice of his ownership to the Securities and Exchange Commission on April 4, but his purchasing of Twitter stock has been traced back to as early as January 2022.
By March 14, Musk had gradually bought more than 5 percent of the company’s total stock.
Still, Musk has paid a large sum to restore unadulterated, First Amendment-backed content on Twitter.
Twitter stock has shot up over 25 percent after its first week of trading since Musk’s purchase was first announced (April 5). Musks’ earnings from his Twitter stock have been estimated at $156 million.
Twitter has yet to issue a response to the litigation.
Musk contends it was all purchased with Robinhood gift cards but has yet to issue an official response.
Follow along on Twitter: @AlejandroAveela