A proposed class-action lawsuit against Elon Musk and his family office Excession can proceed in federal court, a judge ruled Friday.

Summary

A federal judge ruled that a class-action lawsuit against Elon Musk over alleged securities fraud can proceed.

Former Twitter shareholders claim Musk failed to disclose his stock purchases in a timely manner, causing them to sell at artificially low prices.

The judge noted Musk’s March 2022 tweet suggesting interest in buying another social network as misleading. Musk’s lawyers argue the late disclosure was an error.

The SEC has filed a similar suit. Musk acquired Twitter for $44 billion in 2022 and recently merged xAI with the platform.