Elon Musk was ordered by a U.S. judge to face most of a lawsuit claiming he defrauded former Twitter shareholders last year by waiting too long to disclose that he had invested in the social media company, which he later bought and renamed X.
In a decision made public on Monday, U.S. District Judge Andrew Carter said shareholders in the proposed class action could try to prove that Musk intended to defraud them by waiting 11 days past a U.S. Securities and Exchange Commission deadline to reveal he had bought 5% of Twitter’s shares.
i mean it wouldn’t be too hard to prove anyway. if he had prepared beforehand and bought the shares through shell companies it would have been harder to prove but if he just bought them outright it’s just " did you have the share? did you disclose them?" and now his lawyers hate him (who am i kidding they already hated him)