Overview

• A U.S. District Court judge rejected Elon Musk's motion to dismiss a shareholder lawsuit alleging fraud in his delayed disclosure of Twitter stock purchases.
• The lawsuit claims Musk missed an SEC deadline to disclose his 5% Twitter stake in March 2022 and delayed revealing his 9.2% stake until April 4, 2022, saving him over $200 million.
• Shareholders argue Musk's actions caused financial harm by artificially lowering Twitter's stock price before his disclosure, leading to losses for those who sold shares prematurely.
• The judge highlighted evidence that Musk's regulatory filings and tweets, including joking about buying Twitter, could have misled investors about his intentions.
• The SEC is pursuing a separate lawsuit against Musk for alleged violations of securities laws related to the same delayed disclosures.