Elon Musk Seeks Dismissal of Lawsuit Over Delayed Twitter Stake Disclosure

Elon Musk aims to dismiss a lawsuit from former Twitter shareholders who allege he delayed disclosing his substantial ownership stake in 2022. Musk argues the delay was a misunderstanding, not fraud. The SEC has investigated the matter, and a previous motion to dismiss was denied by Judge Andrew Carter.

Elon Musk is seeking to dismiss a lawsuit initiated by former Twitter shareholders who have accused him of delaying the disclosure of his significant ownership stake in the social media company in early 2022. Musk contends that the delay was a mistake rather than an attempt to defraud shareholders.

In a recent late-night filing in Manhattan federal court, Musk argued that it is implausible to suggest he intended to deceive shareholders who were unaware of his 9.2% stake in Twitter and consequently missed out on substantial gains. The proposed class-action lawsuit asserts that Musk and his wealth manager, Jared Birchall, were aware of the SEC rule requiring disclosure of a 5% stake by March 24, 2022, but delayed the announcement by 11 days, allowing Musk to purchase more shares at lower prices and save over $200 million.

Musk has denied claims that a Morgan Stanley banker assisted in devising a strategy to acquire Twitter shares discreetly. The case, known as Oklahoma Firefighters Pension and Retirement System v Musk et al, continues in the U.S. District Court for the Southern District of New York.

(Disclaimer: With inputs from agencies.)