Elon Musk recently bought a huge stake in social media giant Twitter. News then broke that Elon was being added to the company’s board. That idea was scrapped after Musk went on a rampage of criticism against what he felt were weaknesses in the platform. Chaos has ensued, as Twitter employees fear a hostile takeover.

Shareholders are now firing back at Elon Musk. The Tesla boss has long been suspected of shady financial practices, including using social media to manipulate the stock market. Musk also made a fortune by using Twitter to pump up the factually worthless Dogecoin cryptocurrency.

Those practice are now being challenged in court, according to Deadline. Twitter shareholders have sued the billionaire for taking too long to reveal his purchase of a 9.2% stake in the company. The class-action suit, filed in Manhattan, claims Musk made materially false and misleading statements and omissions by failing to report his purchase by March 24, the legal cut-off date to do so.

Elon Musk’s fortune has largely been galvanized by his influence. The cryptocurrency market is generally unregulated, so there is not muchofficials can do about his manipulation there. The Security Exchange Commission will be interested to see if Musk violated any rules regarding the stock market, however.

Twitter shares jumped by 27% after Musk finally did announce his stock purchase. Investors saw it as a vote of confidence in Twitter from an influential and ultra-rich person. Then came the negative tweets.

The lawsuit is seeking compensatory and punitive damages. No dollar amounts have been publicly released. Elon Musk’s legal team has not made any comment on the matter. We will have to wait and see how far this case goes, as Musk can afford to make it a very expensive fight in court.

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Tags: Elon Musk
Michael Perry

Michael Perry is a news contributor for Ringside News and Thirsty for News. Michael has an M.A. in Communication Technology from Point Park University in his hometown of Pittsburgh, PA.

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