Alamy
in the social media company, Twitter, and the company's CEO announced that Musk would be joining the board of directors as well. This pumped-up Twitter's stock price from around $39 a share to close to $50 a share.Musk's declaration of the recently gained assets came on the 5th of April. However, as per Federal law in the U.S., any acquisition of a stake beyond 5 percent must be declared within a period of 10 days.
According to the lawsuit filed by former Twitter shareholders, Musk had reached the 5 percent stake threshold on March 14th itself and was required to declare his holdings by March 24. By failing to do so and continuing to acquire more Twitter stock, Musk enjoyed the low prices while increasing his stake, which allegedly saved him $143 million.
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