Elon Musk Faces Lawsuit Over Alleged Misleading Twitter Share Disclosures

A U.S. judge has denied Elon Musk's bid to dismiss a lawsuit accusing him of misleading former Twitter shareholders regarding his investment in the company. The Oklahoma Firefighters Pension and Retirement System and other plaintiffs claim Musk failed to disclose his 5% stake by the SEC's March 2022 deadline and delayed revealing a 9.2% stake, which may have saved him over $200 million while harming shareholders who sold at deflated prices. Judge Andrew Carter stated that the evidence suggests Musk's actions could be seen as fraudulent, particularly citing misleading tweets he posted that implied he was considering a rival platform. Musk's legal team argues that any delays were unintentional mistakes, but the judge noted that his tweets could mislead the market about his intentions. The case will proceed alongside a separate SEC lawsuit against Musk for similar disclosure issues. Musk completed a $44 billion acquisition of Twitter in October 2022.