Elon Musk faces lawsuit for misleading Twitter shareholders over investment strategy that ‘saved him over $200 mn’

A US judge on Friday has denied Elon Musk’s request to dismiss a lawsuit accusing him of misleading former Twitter shareholders. It claimed Musk waited too long to reveal his initial investment in Twitter (now called X), which may have been fraudulent.

Judge Andrew Carter in Manhattan said shareholders provided enough evidence to suggest Musk intentionally misled them. They argue he used a misleading regulatory filing, tweets about Twitter’s future,and a strategy to “silently” build his Twitter stake. Carter dismissed some other claims in the proposed class action. He did not rule on the case’s merits.