One of the shareholders of Twitter sued the American entrepreneur and the richest man in the world, Elon Musk, for failing to disclose his stake in the company by the deadline and for being able to purchase shares at a lower price.

In early April, the founder of SpaceX and Tesla, Elon Musk, announced that he owns a 9.2% stake in Twitter, after which the company's shares jumped in price by more than 20%.

In a filing, plaintiff Mark Bain Rasella alleges that Musk began acquiring shares in the company in January and owned more than 5% of the shares by April 14. In accordance with the rules of the US Securities and Exchange Commission, Musk had to inform the agency about exceeding the threshold of 5% within ten days, that is, until March 24. The billionaire instead continued to buy securities and provided data only on April 4, when he already owned more than 9% of Twitter shares.

Investors who sold their Twitter shares between March 24, 2022, when Musk was due to announce his stake on Twitter, and April 4, 2022 missed out on the resulting share price appreciation as the market reacted to Musk’s purchase, and suffered damage, the document says.