Elon Musk must face fraud lawsuit over disclosure of Twitter stake [View all]

Source: Reuters

NEW YORK, March 28 (Reuters) - A U.S. judge on Friday rejected billionaire Elon Musk's bid to dismiss a lawsuit claiming he defrauded former Twitter shareholders by waiting too long to disclose his initial investment in the social media company, now known as X.

U.S. District Judge Andrew Carter in Manhattan said the shareholders adequately pleaded that Musk, now a top adviser to President Donald Trump, intended to commit fraud through an improper regulatory filing, misleading tweets about Twitter's future, and a strategy to "silently" build his Twitter stake.

Carter dismissed some other claims in the proposed class action. He did not rule on the case's merits. The U.S. Securities and Exchange Commission is also suing Musk over the late disclosure.

Lawyers for Musk did not immediately respond to requests for comment.

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By Jonathan Stempel
March 28, 2025 6:48 PM EDT Updated an hour ago


Read more: https://www.reuters.com/legal/elon-musk-must-face-fraud-lawsuit-over-disclosure-twitter-stake-2025-03-28/