Twitter investors are going after Musk because they believe he caused the social media company's stock to drop. The initial drop saved Musk millions since he didn't disclose his purchase. More recently, Musk's tweets have raised doubts among investors since it seems the Twitter deal could fall through.

Unlike most CEOs, Tesla and SpaceX boss Elon Musk tends to simply share anything on social media, even if there's a good chance it will lead to issues down the road. His "funding secured" tweet to take Tesla private is a perfect example, though we could find many.

Fast-forward to the present, and in a somewhat similar fashion, Musk is planning to purchase Twitter. He's currently securing funding, though the company was worth a whole lot more when he first offered his deal than it is now. Moreover, reports suggest that perhaps it hasn't been so easy for Musk to gather up the funds, and he doesn't want to sell more personal stock or borrow against his holdings.

This makes sense if you look at the bigger picture. As we've seen, Tesla stock has been on a quick downward trend ever since Musk committed to buying Twitter. This means he has fewer funds available during a time when he's trying to round up more.

Twitter investors claim that Musk saved himself around $156 million by not disclosing that he purchased over 5 percent of Twitter. According to the rules, the Tesla CEO needed to submit the official paperwork by March 14, 2022. The investors hope to be certified as a class, and they're aiming to collect punitive and compensatory damages from Musk.

Musk kept buying Twitter stock after failing to disclose that he'd hit the threshold. In April, he finally admitted that he had a 9.2 percent stake in Twitter. However, the investors note that the damage had already been done. The investors shared:

"By delaying his disclosure of his stake in Twitter, Musk engaged in market manipulation and bought Twitter stock at an artificially low price."

The investors also take it a step further, naming Twitter as a defendant. They believe the social media giant should be investigating Musk's behavior. However, the group isn't asking for money from Twitter.

The US Securities and Exchange Commission (SEC) is already investigating the timing related to Musk's disclosure. Investors are required by the SEC to disclose any stake exceeding 5 percent within 10 days of accumulating the shares.

The investors suing Musk also point out that he publicly announced that the Twitter deal is "temporarily on hold." He made it seem as though Twitter may have lied to him, though if he had done his due diligence, perhaps he would have had the information he needed before entering into the purchase deal.

Got a tip for us? Email: