The Globe and Mail reports in its Wednesday edition that 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. A Reuters dispatch to The Globe says that 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 Mr. Musk intended to defraud them by waiting 11 days past a Securities and Exchange Commission deadline to reveal he had bought 5 per cent of Twitter's shares. The judge in Manhattan also dismissed an insider trading claim against Mr. Musk, the world's richest person. Shareholders led by an Oklahoma firefighters' pension fund said Mr. Musk saved more than $200-million (U.S.) by adding to his Twitter stake, and quietly talking with its executives about his plans, before finally disclosing a 9.2-per-cent holding in April, 2022. The shareholders also said they sold Twitter shares at artificially low prices because Mr. Musk hid what he was doing. Mr. Musk's lawyers argued that any disclosure failure was "inadvertent" because he is so busy.
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