Elon Musk's Fraud Lawsuit Over Late Twitter Stake Disclosure

Elon Musk has been ordered by a U.S. judge to face a lawsuit alleging that he defrauded former Twitter shareholders by waiting too long to disclose his investment in the social media company. The judge dismissed an insider trading claim against Musk but allowed the shareholders to proceed with their claim that he intended to defraud them by waiting 11 days past the SEC deadline to reveal his purchase of 5% of Twitter's shares. The shareholders argue that Musk saved over $200 million by adding to his Twitter stake and secretly discussing his plans with executives before finally disclosing a 9.2% stake in April 2022. Musk's lawyers claimed the failure to disclose was inadvertent, but the judge found evidence that Musk understood the disclosure rules.