- Some Twitter investors sued Dogecoin cryptocurrency supporter Elon Musk, claiming that he delayed the revelation of his Twitter stakes.
- He has temporarily halted the purchase deal with the social media giant.
- Jack Dorsey also departed from Twitter’s BOD after leaving the position as CEO last year.
Twitter and Elon Musk, the supporter of cryptocurrency Dogecoin, both have been in the limelight for quite some time now. And currently, there is a temporary halt on the Tesla CEO’s Twitter purchase. But it seems like dark clouds are starting to envelop the Billionaire as the investors are approaching the courts.
According to Reuters, Elon Musk was sued by Twitter investors for the delayed revealing of his stake in the company. This was highlighted in a recently filed complaint in the California federal court.
The primary reason for the dispute is that Elon Musk saved himself $156 Million while failing to reveal his total stake in the social media giant Twitter. The defendants argue that he had bought over 5% of Twitter by March 14.
Accused Of Manipulating The Market
Allegedly, Elon Musk used market manipulation to carry out the purchasing of the company at an artificially lower rate.
Willian Heresniak from Virginia represented the group of investors and argued about Elon Musk’s buy. He highlighted that Musk continued to buy the stock after that and eventually revealed that he owned 9.2% of the company in early April.
And that by delaying his disclosure of Twitter stakes, he got into market manipulation and purchased Twitter stock at an artificially low price.
Furthermore, Jack Dorsey also took a leave from Twitter’s Board of Directors. Anyway, last year he stepped down from the Chief Executive Officer (CEO) position, so seemingly this might not be that shocking for the folks.
Elon Musk has been a significant supporter of the cryptocurrency Dogecoin. As the cryptocurrency market has witnessed a lot of bearish trends lately, Dogecoin cryptocurrency was not untouched by them either.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.