Error or Intent: Elon Musk Accused of Delayed Disclosure of Twitter Shareholding

Elon Musk admitted that the delay in disclosing information about his large stake in Twitter in 2022 was due to an error.

When Musk acquired the company in October 2022, legal battles erupted not only with the former owners but also with shareholders. They are demanding compensation for lost profits, as Reuters reports, since Musk was required to announce his ownership of more than 5% of Twitter shares on March 24, 2022, but did so only on April 4, when he already controlled 9.2%. After this, the stock price surged by 27%, causing shareholders who sold their shares earlier to incur losses.

The prosecution claims that the delay allowed Musk to acquire more shares on favorable terms, saving at least $200 million on price differences.

Last week, Musk's representatives filed new documents in the Manhattan Federal District Court, explaining that the billionaire failed to disclose the information by mistake, believing he had until the end of 2022 to do so. They assert that Musk had no intention of saving on the purchase of shares or depriving shareholders of profits from the rise in stock prices. Last September, the court rejected this defense, citing Musk's experience in declaring deals with Tesla and SolarCity shares. The judge suggested that Musk was aware of the disclosure requirements for Twitter shares, despite the defense's claims about his busyness.