Elon Musk is being sued for buying “secret” Twitter stock.

Elon Musk faces lawsuit for ‘secret’ Twitter stock purchases


An updated case from the Oklahoma Firefighters Pension and Retirement System claims that Morgan Stanley helped Elon Musk quietly buy a stake of over 9% in Twitter (now X). The lawsuit was filed in Manhattan.

Bloomberg reports that the claim says a Morgan Stanley banker told the owner of Tesla how to keep buying Twitter stocks without telling the rest of the market.

The lawsuit says that Musk’s failure to reveal that he owned more than 5% of the platform kept share prices unfairly low and let him buy more than 9% of Twitter without the market reacting. When it became known how much Musk owned the company, the stock price went up a lot.

He missed the March 24 date to say that he owned more than 5% of the social media site; he instead said that he owned more than 9% on April 4. On April 4, share prices went up by 27%.

Elon Musk’s defense
Earlier this year, Elon Musk said that the lawsuit was pointless and should be thrown out. He said that it was only meant to “harness the spectacle” of his $4 billion purchase of the site. But in September, a judge said that a new suit could go forward.

Morgan Stanley and Msuk have worked together on several projects in the past, and the lawsuit says that they made almost $1.5 million in fees when they carried out the billionaire’s “secret Twitter stock acquisition scheme.”

The unknown Morgan Stanley banker worked directly with Musk and Jared Birchall, who was Musk’s business manager and also the CEO of Neuralink, which Musk owned, to hide the fact that Musk was buying stocks. There are shares in the lawsuit that the banker gave information on “trading systems to avoid public detection” and “money saved” by supporting these trades from the market.

A federal judge has forced Musk to answer questions about his purchase of Twitter after he refused to go to an interview before the purchase. Musk is being questioned about the purchase by several sources.

Comments are closed.