Elon Musk, Twitter, lawsuit

Elon Musk has been slammed by his employees for his ‘inappropriate’ use of the Twitter app. Image via: @Twitter/@elonmusk

Elon Musk sued for law-breaking Twitter investment – nets R2 billion

Elon Musk is being sued for not disclosing a Twitter investment that may have earned him over R2 billion – and he may have broke protocol.

Elon Musk, Twitter, lawsuit

Elon Musk has been slammed by his employees for his ‘inappropriate’ use of the Twitter app. Image via: @Twitter/@elonmusk

Billionaire Elon Musk has only been the largest shareholder of Twitter for just a few weeks, however, he’s now officially been sued. Another shareholder in the social media company filed a class-action lawsuit over Musk’s 11-day delay in officially disclosing his investment in Twitter to the Securities and Exchange Commission (SEC).


According to securities law, Musk was expected to file paperwork with the SEC by 24 March. About ten days after his stake in Twitter grew to 5% although he didn’t submit the documents until 4 April.

It may sound like a small gripe, to launch legal action over the delayed submission of paperwork but he may have scored over R2.2 billion ($156 million).

The claims made in the lawsuit are that the gains Musk experienced were at the expense of other shareholders, who were not able to similarly profit. The main named plaintiff in the case is Marc Bain Rasella explained in the legal papers that Musk bought the Twitter shares at an artificially low price.

In between the disclosure, Musk continued to buy Twitter stock at the price of around $39 per share thus bringing his total stake to 9.2%. The share price of Twitter inflated by about 30% and following his disclosure of the investment was over $50 per share.


Musk has been known to have a rather chaotic Twitter profile, and the last few days have been no different, after the SpaceX and Tesla chief executive initially agreed to join the board of directors of Twitter.

Although, the stint was abruptly ended following days of bizarre tweets from Musk, who polled his Twitter followers whether the company should change its name, and speculated on whether the service was “dying.”

In an email to employees Parag Agrawal, the chief executive of Twitter, said Musk would have been a “fiduciary of the company, where he, like all board members has to act in the best interest of the company and all our shareholders.” He added that he believed it was “for the best” that he ultimately wouldn’t take the position.

READ MORE: ‘I believe it’s for the best’: Elon Musk is officially off the Twitter board