Elon Musk accused of violating the law when buying shares of Twitter

(ORDO NEWS) — Elon Musk’s huge investment in Twitter has landed him in a lawsuit alleging that the billionaire illegally delayed disclosing his stake in the social media company so he could buy more shares at lower prices.

The complaint in New York federal court accuses Musk of violating a regulatory deadline to show that he has amassed at least a 5 percent stake.

Instead, according to the complaint, Musk did not disclose his position on Twitter until he nearly doubled his stake to over 9 percent.

Twitter shareholders believe that Elon Musk deliberately delayed the news of buying his shares in order to buy more at a lower price.

The strategy, the lawsuit alleges, hurt less wealthy investors, who sold shares in the company almost two weeks before Musk admitted he owned a large stake.

Musk’s documents show that he bought just over 620,000 shares at $36.83 a share on Jan. 31 and then continued to accumulate more shares almost every trading day until April 1.

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