Musk has delayed the revelation of his stake in the company, owing to which, billionaire investor has sued him, on Tuesday, 12 April.
The refrainment has initially allowed him to buy shares at lower prices, and deceive other organizations.
The twitter shareholder sued him for delaying in disclosing more than 5% stake in the company. It kept the share price low.
The owner of Tesla was required to disclose his position to the US Securities and Exchange Commission (SEC) before March 24. He did not disclose his holdings, and the shareholder, Marc Bain Rasella sued him before the federal court in Manhattan.
The investor mentioned that the company’s share rose to 27%, going from $39.31 to $49.97, starting from 1st April, in just three days.
This happened when Musk revealed his participation in the firm.
Twitter confirmed that Musk had acquired 9.2% of the company’s shares. It also disclosed that he would join the board of directors of the social network..
A series of tweets from Tesla’s CEO questioned whether the firm was dying, if the company should turn its San Francisco headquarters into a homeless shelter, and if the “w” in Twitter should be erased.
Twitter CEO Parag Agrawal reversed that suggestion.
