Elon Musk’s Twitter Gambit: Shareholders Left Feeling Short‑changed
On April 12, a class‑action suit hit the Manhattan federal court, accusing billionaire Elon Musk of playing a double‑dealing game with former Twitter shareholders. The case argues Musk hid a 9.2 % stake in the social‑media titan until the very last minute, letting him scoop shares at bargain prices while the rest of the market cheered his enthusiasm.
Why the Shareholders are Afraid they Got Slipped Past
- Delayed Disclosure – The lawsuit claims Musk should have revealed his stake by March 24, but he waited until April 4 to make the big public announcement.
- Market Surge – After the reveal, Twitter’s shares jumped 27 % from $39.31 to $49.97, sparking a frenzy of trades.
- Wrong‑Time Buying – Shareholders say Musk’s delayed entry let him buy the same ticker at much lower prices, a move that practically breached the “key to the lock” value of later investors.
- Artificial Deflation – Those who sold pre‑April 4 were forced to part with shares that valuation scholars argue were “artificially deflated.”
Core Claims and Numbers
- The plaintiff, Marc Rasella, sold 35 Twitter shares for a total of $1,373, averaging $39.23 each.
- Musk’s stake breach happens under federal law that demands a 5 % ownership revelation within 10 days.
- Both compensatory and punitive damages are being pursued, though the exact sums remain unpublicized.
Board Gambles and the Finishing Touch
Musk initially agreed to join Twitter’s board on April 5, but then had a change of heart and elected to step out.
Without the board role, he sidesteps the 14.9 % stake limiter and keeps riding the wave of opportunistic buying.
Potential Upside?
Some analysts speculate that Musk’s growing influence could either prompt the company to adopt bold new strategies or even spark an unsolicited takeover bid.
Musk’s Fortune & The Weather
According to Forbes, Elon Musk’s net worth sits at a staggering $265.1 billion. The current legal ruckus could instill a juicy dose of existential drama into what already feels like a high‑stakes roller‑coaster.
