Labaton Sucharow, a nationally ranked and award-winning shareholder rights firm, announces that a class action lawsuit has been filed on behalf of shareholders of Twitter, Inc. (NYSE: TWTR) common shares against Elon Musk for securities law violations. The complaint was brought in United States District Court for the Southern District of New York and is captioned Rasella v. Elon Musk, No. 1:22-cv-03026 (S.D.N.Y.) and is brought on behalf of investors that incurred damages on their sales in Twitter common stock between March 24, 2022 and April 1, 2022, inclusive (the “Class Period”). The deadline to seek appointment as lead plaintiff is June 13, 2022.
Elon Musk, the founder of Tesla and Space-X, and according to Forbes, the richest person in the world, started to acquire shares of Twitter beginning in January 2022. By March 14, 2022, Musk had acquired more than a 5% ownership stake in Twitter, requiring him to file a Schedule 13 with the United States Securities and Exchange Commission (“SEC”) within 10 days, or March 24, 2022.
Musk did not file a Schedule 13 with the SEC within the required time and instead continued to amass Twitter shares, eventually acquiring a 9.1% stake in the Company before finally filing a Schedule 13 on April 4, 2022. By the time Musk filed the required Schedule 13, revealing his ownership stake in Twitter, the Company’s share rose from a closing price of $39.31 per share on April 1, 2022, to close at $49.97 per share on April 4, 2022 – an increase of approximately 27%.
Investors who sold shares of Twitter Stock between March 24, 2022, and before the actual April 4, 2022 disclosure, missed the resulting share price increase as the market reacted to Musk’s purchases. By failing to timely disclose his ownership stake, Musk was able to acquire shares of Twitter less expensively during the Class Period.
If you sold or otherwise disposed of Twitter shares between March 24, 2022 and April 1, 2022 or have questions about your legal rights or possess information relevant to this matter, please contact David J. Schwartz using the toll-free number (800) 321-0476, via email at david@labaton.com, or by filling out this form.
About the Firm
Labaton Sucharow LLP is one of the world's leading complex litigation firms representing clients in securities, corporate governance and shareholder rights, consumer, and cybersecurity and data privacy litigation, as well as whistleblower representation. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at labaton.com.
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Contacts
David J. Schwartz
(800) 321-0476
david@labaton.com
