Investors said Musk continued to buy shares after showing interest in Twitter, and finally revealed in early April that he owns 9.2% of the company.
Read: Beware, illegal trading robot and money game still rampant
Regarding this lawsuit, Musk and his lawyers have not provided comment. Twitter also declined to comment.
Earlier last month the Wall Street Journal published a report about Musk’s stake in Twitter. This prompted SEC to open an investigation into whether Musk committed insider trading.
SEC requires any investor who purchases more than 5% stake in a company to disclose their holdings within 10 days. (rr)