Elon Musk must face Twitter shareholders’ lawsuit over alleged securities fraud

A proposed class-action lawsuit against Elon Musk and his family office Excession has been allowed to proceed in federal court, after Musk sought to have the case dismissed. The lawsuit, brought by former Twitter shareholders, alleges that Musk failed to disclose his purchases of Twitter shares within a legally-mandated time frame, leading to artificially deflated prices. Judge Andrew L. Carter agreed with the plaintiffs that Musk’s failure to disclose his stake sent a false pricing signal to the market, noting that Musk’s tweet about buying a different social network was seen as a misdirection.

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