Elon R. Musk (Twitter) Image
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Elon Musk (Twitter Shares)

Class Action
  • Active
Investigation
04/04/2022
Initial Lawsuit
04/12/2022
Lawsuit Progression
06/13/2022

Investigation

Whether Elon Musk’s failure to disclose his 5% ownership of Twitter on time violates Section 13(d) of the Exchange Act and SEC Rule 13d-1 promulgated thereunder, 17 C.F.R. § 240.13d-1(a).

When Elon Musk filed the required Schedule 13 revealing his ownership stake in Twitter, the company’s shares rose about 27%. Musk may have been motivated to delay the Schedule 13 filing to acquire shares of Twitter less expensively.

  • Investigation Date
    04/04/2022
  • Hypothetical Transgression
    Securities Violation
Main Event

13G - Owner

04/04/2022

SEC Filing

Elon Musk files a Schedule 13G with the U.S. Securities and Exchange Commission (SEC) revealing an ownership stake in Twitter: 73,486,938 shares held by the Elon Musk Revocable Trust dated July 22, 2003 for which Elon Musk is the sole Trustee, or 9.2% of the company.

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$49.97 $39.31 $10.66 27.12%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 04/12/2022

This is a federal securities class action on behalf of all investors who sold or otherwise disposed of Twitter, Inc. securities between March 24, 2022, and April 1, 2022, inclusive.

  • Filing Date
    04/12/2022
  • Class Period
    03/24/2022 to 04/01/2022
  • Transgression
    Securities Violation
  • Filing Firms
    Block & Leviton, LLP
  • Case Title
    Rasella v. Musk
  • Docket Number
    1:22-cv-03026
  • Court
    New York Southern District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) Elon R. Musk had acquired a 5% ownership stake in Twitter as required by Section 13(d) of the Exchange Act and SEC Rule 13d-1 promulgated thereunder, 17 C.F.R. § 240.13d-1.

Defendants

  • Owner
    Elon R. Musk

Lawsuit progression

  • Docket Number
    1:22-cv-03026
  • Court
    New York Southern District Court

The lead plaintiff deadline has passed, we will update this page as the lawsuit progresses.
Last event retrieved on 09/17/2022.

Factual Timeline

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