Human Interest Human Interest News Business & Technology Twitter Shareholder Sues Elon Musk for Delay in Disclosing Massive Stake in Platform The suit claims Elon Musk was late to notify regulators that he had acquired a substantial stake in Twitter, which cost them profits By Jason Hahn Jason Hahn Jason Hahn is a former Human Interest and Sports Reporter for PEOPLE. He started at PEOPLE's Los Angeles Bureau as a writer and reporter in 2017 and interviewed the likes of Kobe Bryant, Arnold Schwarzenegger and Tom Brady. He has a B.A. in English from the University of California, Berkeley, and a Master's degree in Journalism from Columbia University. He previously worked for Complex Magazine in New York City. People Editorial Guidelines Published on April 13, 2022 06:17PM EDT Elon Musk. Photo: Theo Wargo/Getty Elon Musk's connection to Twitter is the subject of a new lawsuit. Musk — the wealthiest person on the planet — recently purchased a 9.2 percent stake in the social media platform, according to a U.S. Securities and Exchange Commission document filed on April 4. That makes him the company's largest shareholder. Now another Twitter shareholder, Marc Bain Rasella, claims investors lost out on gains because the Tesla CEO waited too long to declare his massive purchase, Bloomberg reported. Filed in Manhattan federal court on Tuesday, Rasella's lawsuit contends that Musk was supposed to notify the Security and Exchanges Commission of his purchase by March 24, according to a copy of the court documents posted by NPR. For more on Elon Musk, listen below to our daily podcast PEOPLE Every Day. By delaying the disclosure, Musk was able to buy more shares at a lower price, and cost other investors potential profits, Rasella claims. Representation for Musk did not immediately respond to PEOPLE's request for comment. Rasella's court docs say the suit was filed on behalf of Twitter investors who sold their shares from March 24 to April 1, except for Musk, his family and affiliates. Elon Musk Becomes Twitter's Largest Shareholder After Questioning Tech Giant's Free Speech Practices Chesnot/Getty Images "When Musk finally filed the required Schedule 13, thereby revealing his ownership stake in Twitter, the Company's shares rose from a closing price of $39.31 per share on April 1, 2022, to close at $49.97 per share on April 4, 2022 — an increase of approximately 27-percent," the court docs say. The suit alleges Musk "knew or recklessly disregarded" his obligation to notify the regulators. "[Musk] saved approximately $143 million on his Twitter purchases by delaying the filing of the required Schedule 13G/D and purchasing additional shares at deflated prices," the suit says. Grimes Says Elon Musk Sees Son X Æ A-12 as a 'Protégé': He's 'Bringing Him to Everything' The tech mogul, who has more than 80 million Twitter followers, made his investment in Twitter after accusing the company of "failing to adhere to free speech" practices and giving "serious thought" to starting his own social media site. RELATE VIDEO: Elon Musk and Grimes Split After 3 Years: 'We Are Semi-Separated but Still Love Each Other' Though Musk is now Twitter's largest shareholder, he decided not to join the company's board following his investment. "Elon's appointment to the board was to become officially effective 4/9, but Elon shared that same morning that he will no longer be joining the board," Twitter CEO Parag Agrawal said in a tweet. "I believe this is for the best. We have and will always value input from our shareholders whether they are on our Board or not. Elon is our biggest shareholder and we will remain open to his input."