Elon Musk Defends Himself Against Twitter Stock Misleading Allegations

Elon Musk, the well-known SpaceX and Tesla CEO, recently sought to dismiss a legal challenge. This lawsuit accuses him of purposely deceiving Twitter investors earlier in 2022. Let’s delve into the juicy details.

Understanding the Allegations

Just ahead of America’s Fourth of July celebrations, Musk took action against a lawsuit aimed at him. The claim? That he intentionally misled Twitter investors, and in doing so, he failed to reveal his increasing stake in Twitter. He did this as he simultaneously tweeted about the possibility of creating his very own social networking platform, just before announcing intentions to acquire Twitter.

The plot thickens though. Allegedly, Musk designed this whole deceptive plan to lower the purchase price of Twitter by a whopping $200 million. An Oklahoma Firefighters pension fund represented all the supposedly affected Twitter investors and filed a proposed class action lawsuit against the tycoon.

Musk Fights Back

Well, Musk didn’t take these accusations lying down. In a court filing made just this week, Musk hit back with a strong denial. He declared that ‘all indications’, even those highlighted in the firefighters’ lawsuit, simply ‘point to a mistake’, and not a carefully coordinated fraud.

So, what’s Musk’s side of the story? He says that the evidence illustrates that he only misunderstood the terms of the Securities Exchange Act, leading him to delay making a Rule 13 disclosure. Remember, a Rule 13 disclosure is a formal declaration of his ownership stake in Twitter, which reached close to ten percent in March 2022.

In Musk’s defense, he suggested that he thought he was only required to disclose this stake at year’s end. He didn’t realize it was supposed to be within ten days after the month when his share surged to 5 percent. Interestingly, he pointed out that in the past, he’s only filed Rule 13 disclosures as the owner of a company, not as an individual suddenly owning a 5 percent stake.

Getting to the Root of the Matter

You might be wondering what all this means. In simple terms, Musk supposedly tried to lower the cost of buying Twitter by not being upfront about his increasing stake in the company. However, he maintains he didn’t do this deliberately but simply misunderstood the rules. His claim? It’s a case of human error, not fraudulent intentions.

Musk denies any malicious intent in not revealing his Twitter ties. However, the class-action continues, representing the interests of an array of Twitter investors who feel Musk’s alleged plan adversely affected them. If Musk proves successful in dismissing the case, this could mean significant legal repercussions for the billionaire. However, for now, the battle is still ongoing.


The tycoon continues to contest the allegations brought against him regarding deliberately misleading Twitter investors. As the legal clash between Musk and the Twitter investors unfolds, the world watches with bated breath. It remains to be seen what the court will make of Musk’s defense that the entire incident was simply a misunderstanding. Stay tuned for updates.


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