Additional Coverage:
- SEC sues Elon Musk over failing to disclose Twitter stock stake (foxbusiness.com)
SEC Charges Elon Musk Over Twitter Stock Purchases
The Securities and Exchange Commission (SEC) has filed a lawsuit against Twitter owner Elon Musk for failing to promptly disclose his purchase of more than 5% of the company’s stock in March 2022.
According to the complaint, Musk’s delayed disclosure allowed him to buy shares at an artificially low price, saving him approximately $150 million. The SEC requires investors with over 5% ownership to disclose their stakes within 10 days. However, Musk allegedly made the disclosure 11 days late, after acquiring 9% of Twitter’s shares.
Following Musk’s disclosure, Twitter’s stock value surged. He subsequently purchased a controlling interest in the company for $44 billion in April 2022.
Musk’s lawyer, Alex Spiro, has dismissed the SEC’s charges as a “sham” and an attempt to harass his client. He claims that Musk has done nothing wrong and that the SEC’s complaint is a minor administrative offense with a nominal penalty.
This is the third lawsuit filed by the SEC against Musk. Previous lawsuits stemmed from his 2018 tweet about taking Tesla private and his refusal to testify about his Twitter purchases. The current lawsuit is expected to be one of SEC Chair Gary Gensler’s final acts before the new administration takes over next week.
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- SEC sues Elon Musk over failing to disclose Twitter stock stake (foxbusiness.com)