The Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing him of violating securities laws by failing to disclose his substantial Twitter stake within the required 10-day window. The SEC claims Musk's delayed disclosure cost investors at least $150 million and seeks to recover his profits, impose civil penalties, and issue other sanctions.
Elon Musk 's acquisition of Twitter has spurred a federal lawsuit from the Securities and Exchange Commission (SEC), alleging that he violated securities laws with a delayed disclosure and potentially saved $150 million in the process. This legal battle unfolds before Musk's tumultuous tenure at Twitter, marked by his initial attempt to back out of the $44 billion deal, his eventual compliance, and the subsequent rebranding of the platform to X.
The SEC's complaint centers on Musk's acquisition of a substantial stake in Twitter before publicly disclosing this information. While Musk eventually revealed his ownership, he did so weeks later than required, missing the SEC's 10-day filing window. According to the SEC, Musk should have filed his paperwork by March 24th, 2022, but instead filed on April 4th (and again on April 5th). During this period, the SEC alleges that Musk purchased over $500 million in Twitter shares.The timing of the lawsuit adds another layer of complexity. As the Trump administration was nearing its end and poised to install a new SEC head, alongside Musk reportedly securing an office in the White House complex, the trajectory of the case remains uncertain. The SEC contends that Musk's delayed disclosure cost investors at least $150 million and harmed those who sold stock between March 25th, 2022, and April 1st, 2022, during the period of undisclosed ownership. The lawsuit seeks to recover the profits Musk made from delaying the disclosure, along with civil penalties and other sanctions.
ELON MUSK TWITTER SEC SECURITIES LAWS DISCLOSURE INVESTORS
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