Judge Allows Shareholder Fraud Lawsuit Against Elon Musk to Proceed

A U.S. judge ruled there is sufficient evidence suggesting Musk intentionally misled investors by delaying disclosure of his Twitter stake, saving over $200 million.

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.