Elon Musk seeks dismissal of lawsuit over delayed Twitter stake disclosure

The ongoing legal battle between Elon Musk and an Oklahoma public pension fund has gained traction as Musk seeks the dismissal of a lawsuit accusing him of delayed disclosure of his Twitter stake. The lawsuit is currently being heard in a Manhattan federal court, under U.S. District Judge Andrew Carter, who previously denied Musk’s attempts to dismiss the case.

Musk, known for his significant influence on both social media and the stock market, revealed his 9.2% stake in Twitter in early April 2022. However, the lawsuit claims that this disclosure came 11 days later than legally required, causing investors to miss out on substantial gains. By the time Musk’s ownership became public, Twitter’s share price had surged by 27%, highlighting the advantage early insiders had.

The Oklahoma pension fund alleges that Musk’s delayed announcement violated federal securities laws, particularly those designed to ensure transparency in the stock market. While Musk’s legal team argues that the delay was unintentional and that no harm was done, the case underscores the critical importance of timely disclosures in maintaining market integrity.

In defending Musk, his lawyers point to the complexity of the transactions involved and assert that the timing of the disclosure did not significantly impact the market or investors. They argue that Musk’s influence on Twitter’s valuation is part and parcel of his public persona, rather than a deliberate attempt to manipulate stock prices.

This lawsuit not only impacts Musk but also sets a precedent for how stringent disclosure requirements will be enforced in the future. The outcome could influence how quickly high-profile investors must report their significant stock acquisitions, ensuring a level playing field for all market participants.

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