Elon Musk Facing Investigations for Failing to Timely Disclose 9.2% Stake in Twitter

Rhea-AI Summary

Schubert Law Firm is investigating Elon Musk's delayed disclosure of his 9.2% stake in Twitter (NYSE:TWTR), amounting to 73.5 million shares. Musk acquired the stake on March 14, 2022, but failed to report it until April 4, 2022, exceeding the 10-day SEC requirement. During this 11-day gap, Musk bought additional shares, saving approximately $156 million in costs. The firm's inquiry suggests potential legal violations related to false disclosures and market manipulation. Twitter shares surged nearly 30% after the announcement.

Positive

• None.

Negative

• Musk's delayed disclosure could lead to legal ramifications, affecting shareholder trust.
• Potential class action lawsuit could arise from the investigation, impacting Musk's reputation.
• Failure to disclose may suggest manipulation, undermining market integrity.

Schubert Law Firm Investigating Potential Class Action After Elon Musk Failed to Timely  Disclose 9.2% Stake in Twitter After Surpassing SEC's  5% Ownership Threshold 

SAN FRANCISCO, April 13, 2022 /PRNewswire/ -- Schubert Jonckheer & Kolbe LLP is launching an investigation of Tesla Executive Elon Musk's failure to disclose his recently acquired 9.2% stake, or 73.5 million shares, in Twitter (NYSE:TWTR) until 11 days after he was required by the Securities and Exchange Commission (SEC) rules to disclose his ownership over 5% of Twitter's outstanding stock.

The SEC requires that anyone who has acquired over 5% ownership in a publicly traded company must publicly disclose this information within 10 days of crossing that 5% threshold. Tesla Executive Elon Musk actively acquired Twitter stock starting on January 31, 2022. On March 14, 2022, Musk surpassed the 5% ownership threshold and hence was required to publicly disclose that ownership of Twitter stock by March 24, 2022, via an SEC filing. But he did not make that filing until 11 days later, on April 4, 2022.

During those 11 days, Musk purchased additional shares of Twitter at prices around $39 per share. He paid approximately $156 million less for those shares because he had not timely disclosed his earlier purchasers of Twitter stock. Upon finally disclosing his 9.2% stake in the Company on April 4, 2022, Twitter shares surged nearly 30%.

Considering these recent allegations, the Schubert Firm is investigating whether Musk's failure to disclose his Twitter ownership of over 5% in a timely manner, coupled with his multi-million-dollar profit, is false and manipulative in violation of state and federal laws.

If you sold Twitter stock between March 24, 2022, and April 4, 2022, you may be able to participate in a class action lawsuit. For more information, please visit our website at http://classactionlawyers.com/elonmusktwitter.

To learn more about your legal rights –– or to participate in a potential class action lawsuit –– please contact us today.

About Schubert Jonckheer & Kolbe

Schubert Jonckheer & Kolbe represents shareholders, employees, and consumers in class actions against corporate defendants, as well as shareholders in derivative actions against their officers and directors. The firm is based in San Francisco, and with the help of co-counsel, litigates cases nationwide.

Contact
Noah Schubert 
Schubert Jonckheer & Kolbe 
nschubert@sjk.law 
Tel: 415-788-4220

View original content:https://www.prnewswire.com/news-releases/elon-musk-facing-investigations-for-failing-to-timely-disclose-9-2-stake-in-twitter-301524307.html

SOURCE Schubert Jonckheer & Kolbe LLP

FAQ

What is the investigation against Elon Musk regarding Twitter (TWTR)?

Schubert Law Firm is investigating Elon Musk for failing to timely disclose his 9.2% stake in Twitter, acquired after surpassing the 5% SEC ownership threshold.

How much of a stake did Elon Musk acquire in Twitter (TWTR)?

Elon Musk acquired a 9.2% stake in Twitter, amounting to 73.5 million shares.

When was Elon Musk required to disclose his Twitter (TWTR) ownership?

Musk was required to disclose his 5% ownership by March 24, 2022, but did not do so until April 4, 2022.

What happened to Twitter (TWTR) shares after Musk's disclosure?

Twitter shares surged nearly 30% following Musk's public announcement of his stake.

What are the implications of the investigation for Twitter (TWTR) shareholders?

Shareholders who sold Twitter stock between March 24, 2022, and April 4, 2022, may participate in a potential class action lawsuit.