Elon Musk urges judge to dismiss X lawsuit
- Investors in the platform sued the billionaire in April 2022
Complaint: Investors in X sued Elon Musk in April 2022
Elon Musk has asked a federal judge in New York to dismiss a lawsuit brought by X shareholders.
Investors in the platform formerly known as Twitter sued the billionaire in April 2022 after he revealed he had acquired a 9.2 per cent stake in the company.
Under federal securities laws, Musk should have disclosed his stake in Twitter within ten days of it crossing 5 per cent of the company's stock.
But he filed with the Securities and Exchange Commission (SEC) about three weeks after crossing that threshold in March 2022.
The shareholders allege that Musk and his wealth manager 'schemed to violate Musk's disclosure obligations so they could secretly build a massive position in Twitter at artificially low prices while deceiving investors'.
But Musk's lawyers argued in a new filing this week that the delay was a simple error and that the shareholders' class-action suit should be dismissed.
They argue that Musk and his wealth manager misunderstood the rules. After learning of the mistake, they claim Musk filed by the next trading day.
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