--- title: "Suit Filed Against Elon Musk by Twitter Shareholder Over Delay in Disclosing Stake" description: "Elon Musk will face a new suit filed by the shareholders of Twitter for not disclosing his stake in Twitter and now he claims to be the biggest shareh" author: "Sanjay Goenka" published: 2022-04-13 canonical: https://www.mindstick.com/news/1559/suit-filed-against-elon-musk-by-twitter-shareholder-over-delay-in-disclosing-stake category: "technology" tags: ["twitter", "technology", "technology news"] reading_time: 2 minutes --- # Suit Filed Against Elon Musk by Twitter Shareholder Over Delay in Disclosing Stake **Twitter** [Shareholder](https://www.mindstick.com/news/1547/blackberry-trying-to-settle-shareholder-lawsuit-over-blackberry-10-to-avoid-trial) filed a lawsuit against **Elon Musk** for not disclosing the stake in Company. Recently Musk claim to be the biggest shareholder of the company with 9.2 percent on giant social [media platform](https://www.mindstick.com/forum/156104/what-are-the-social-media-platform-used-for-seo) Twitter. ## Highlights ``` As per the suggestion, it is assumed that Musk could push Twitter to make some changes The lawsuit contains some unspecified compensatory and punitive damages Musk’s lawyer has not made any comment over the lawsuit ``` **Also Read: [Elon Musk's Shares are the Highest on Twitter among other shareholders](https://www.mindstick.com/news/1545/elon-musk-s-shares-are-the-highest-on-twitter-among-other-shareholders)** As per the lawsuit, [investors](https://www.mindstick.com/news/2413/with-collapse-of-ftx-genesis-alerts-investors-to-the-possibility-of-bankruptcy-without-new-funding) must disclose about the strake after increasing over 5 percent of a company. A lawsuit was filed against the giant [Technology](https://www.mindstick.com/articles/13005/the-functional-aspects-of-laser-technology) Investor Elon Musk by the former shareholder of the company, who claim that they missed out on the recent run-up in its stock price because he waited too long to disclose his share in a giant [social media](https://www.mindstick.com/articles/13056/how-to-leverage-social-media-to-attract-lots-of-blog-traffic) company. Under **federal law**, Elon Musk was booked and in the lawsuit, he was said to be “materially false and misleading statements and omissions,” because he failed to reveal his [investments](https://www.mindstick.com/news/2678/5g-services-in-india-to-attract-rs-1-5-lakh-crore-in-investments-in-2023) on Twitter. Twitter shares raised by 27 percent on April 4 to **$49.47** (Rs. 3,800) which was earlier **$39.31** (Rs. 2,990) after Elon Musk disclosed his stake in the company. Twitter’s former shareholder led by **Marc Rasella** said Elon Musk defrauded the buying of company shares at low prices as he has not informed the company about his stake in the company. The lawsuit seeks unspecified compensatory and punitive damages. A lawyer for musk recently denied any comment on the lawsuit. If we talk about the rules for the above [condition](https://www.mindstick.com/forum/12711/select-query-with-and-condition) then the US [security](https://www.mindstick.com/articles/43813/new-security-technologies) law requires investors to disclose within **10 days** when they have acquired 5 percent of a company. Musk should have been informed the company on 24 March. Some analysts also have warned the company that Elon Musk also could push Twitter towards some changes that could change the working of the company. The case name is **Rasella v Musk,** US District Court and it is entertaining by the Southern District of New York, No. **22-03026.** **Also Read: [UP Government Official Twitter Account Hacked Having 2.7 million Followers](https://www.mindstick.com/news/1551/up-government-official-twitter-account-hacked-having-2-7-million-followers)** --- Original Source: https://www.mindstick.com/news/1559/suit-filed-against-elon-musk-by-twitter-shareholder-over-delay-in-disclosing-stake Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.