Elon Musk sued for alleged stock manipulation

Elon Musk
Illustration of Elon Musk and Twitter. (Source: Tribunnews)

Jakarta, IO – Twitter investors are reportedly suing Tesla CEO Elon Musk for allegedly manipulating the company’s stock prices ahead of its $44 billion takeover bid. The lawsuit was officially filed in San Francisco Federal Court on Wednesday (24/5).

The lawsuit stems from allegations that Musk intentionally saved US$156 million by not disclosing that he had bought more than a 5% percent stake in Twitter on March 14. The investors feel aggrieved and hope Elon can be punished and fined for the allegations.

“By delaying his disclosure of his stake on Twitter, Musk engaged in market manipulation and bought Twitter stock at an artificially low price,” said the investors led by Virginia resident William Heresniak.

In addition to Musk, investors are also suing Twitter, arguing that the company has an obligation to investigate Musk’s action, even though they are not seeking damages from the company.