Former shareholders led by Marc Rasella claimed that the delayed disclosure allowed Musk to purchase more Twitter shares at lower prices while duping them into selling at “artificially deflated” prices.
Twitter shares rose 27 percent on April 4, to $49.97 from $39.31, after Musk disclosed his stake, which investors interpreted as a vote of confidence in San Francisco-based Twitter from the world’s richest person.
Rasella stated that between March 25 and 29, he sold 35 Twitter shares for $1,373, or an average price of $39.23. According to Forbes magazine, Musk is worth $265.1 billion.