China Fund News reporter Yao Bo
Tesla boss Musk, who has always loved to speak on the Twitter platform, was sued by the shareholders of this social media!
What's going on, the fund Jun slowly brushed up:
After Musk sold a large number of Tesla shares last year, he has money in his hands and wants to enter the platform.
Since March, he has quietly bought a stake in Twitter in the market.
On March 14, his stake in Twitter reached a 5 percent warning line, and he should be made public as required by U.S. law.
But he continued to buy at the market price at that time, until his stake reached 9.2%, and he did not make it public.
Such a late report is not only a matter of time, but also involves huge monetary benefits.
Because Marx has a strong celebrity effect, once the stake in Twitter was exposed, the company's stock price soared:
In just 2 days, the stock price soared from $39 to $55, up 30%!
Some finance professors have calculated that if Musk discloses at 5% according to the normal procedure, his subsequent nearly 5% purchase cost will rise sharply, and the benefit he brings from low-key behavior is 156 million US dollars (nearly 1 billion yuan).
David Cass, a finance professor at the University of Maryland Business School, hit the nail on the head: How could he have known nothing about securities law violations? Even if Musk didn't know it, wouldn't anyone who handled securities for him?
The Washington Post commented: "Intentional or unintentional disregard for securities laws is highlighting the continued enrichment of billionaires and powerful people who bypass regulations and tax rules."
The class action lawsuit for Twitter shareholders is the very ones who sold Twitter shares between March 14 and April 4.
Musk has already taken over the SEC's move
The plutocrats who have been calling for wind and rain on social media have caught the attention of U.S. regulators. The recently inaugurated chairman of the U.S. SEC has been called Wall Street's number one nemesis and is known for its tough regulation.
He has been calling for tighter regulatory standards, emphasizing investor protection. After the 2008 financial crisis, he pushed for a derivatives regulatory law that pushed for stricter Wall Street reforms and consumer protection laws.
Musk's collision is also related to Gensler's adjustment of information disclosure: In February this year, the SEC he led announced that the holding time of more than 5% of the shares was shortened from the previous 10 days to 5 days. Gensler pointed out that it is important to reduce information asymmetry, the raising of the card will affect the company's stock price, and it is very important for the company's shareholders to obtain the information as soon as possible.
It's not the first time Musk has gotten into trouble on Twitter. In August 2018, Musk spoke on Twitter saying that he had "raised funds to privatize Tesla," and the stock price subsequently soared. However, two weeks after the article, Musk came forward to clarify that Tesla would maintain a public listing, and the so-called "privatization" was finally over.
Because this statement is suspected of misleading investors, the SEC invited Musk to "drink tea". In late 2018, the two sides reached a settlement in which Musk was willing to pay a $20 million fine, stepped down as chairman, and agreed to a lawyer reviewing his Twitter statements.
Another incident caused by the remarks was related to a well-known rescue incident, which was later adapted into a famous documentary.
In 2018, a junior football team in Chiang Rai, Thailand, a total of 13 people, including coaches, were trapped in a cave in northern Thailand, and the rescue task was extremely difficult due to the steep terrain of the cave and the flood siege caused by the rainy season. Musk worked with engineers at SpaceX to develop the miniature submarine, and Musk traveled to Thailand to personally deliver the submarine to help with the rescue, but local officials decided not to use it.
Answorth, a 63-year-old British diver who was rescuing him at the scene at the time, turned Musk's move into a "prying stunt." That infuriated Musk, who called the diver a "pedo guy."
Answorth later filed a lawsuit against Musk, calling musk's tweets "false and defamatory" and seeking a claim for $19 million, but the defamation case ended with Musk winning the case.
EDIT: Captain