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Elon Musk’s Twitter profile shown on the screen of a computer and the Twitter logo shown on the phone screen are seen in this illustration photo taken in Krakow, Poland, on April 9, 2022.
Jakub porzycki | Nurphoto | Getty images
A demand for class action proposed against Elon Musk and his excession of the family office can proceed in a federal court, a judge ruled on Friday, after the centi-billionaire of technology tried to dismiss the case.
The case is RASELLA v. Musk (Case No. 1: 22-CV-03026-ALC-GWG) in the Southern District of New York.
The demand was filed by former Twitter shareholders who claim that they lost money when the CEO of Tesla and Spacex was accumulating a participation in the social network, but did not reveal their purchases within a legally obligatory period of time.
The Pension and Fire Retirement System of Oklahoma and other plaintiffs in the lawsuit complained that they had sold Twitter actions from then on the stock market to “artificially uninfered prices”, while Musk obscured his own interest and bets in the company.
Elon Musk and Jared Birchell did not immediately respond to a request for comments.
Musk’s lawyers have argued that, although their dissemination was presented after a deadline requested by the SEC, this was simply an error and that the technological tycoon did not commit or attempted the fraud of values.
In his opinion, Judge Andrew L. Carter in the South District of New York wrote that the court agreed with the plaintiffs that the fact that Musk did not reveal that he was collecting the actions of Twitter sent a “signal of false prices to the market.”
In his 43 pages opinion, the judge also pointed out that Musk had published a tweet on March 26, 2022 indicating that he was thinking of buying a different social network, not Twitter, although he had already accumulated millions of shares on Twitter as of March 25, 2022.
He wrote, it was “reasonable” to read Musk’s tweet “as a statement aimed at directing the public to think that buying Twitter was just a fantasy.”
Musk finally offered and directed an leverage purchase of Twitter in 2022 in an agreement for a value of approximately $ 44 billion. He made radical changes in the business, the social platform and then renamed it X.
As previously reportedThe stock exchange and values commission filed a similar lawsuit against Musk for alleged breach of properly disseminating Twitter shares in 2022 before taking over the company.
On Friday, Musk said another of his companies, Xai, I was merging with The social network in a transaction of the entire stock, valuing the artificial intelligence business at $ 80 billion and the social networks business at $ 33 billion.
