The Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, alleging that he failed to timely disclose his ownership of Twitter stock in early 2022 before acquiring the social media platform. The SEC claims this allowed Musk to underpay for shares by at least $150 million. Musk, who bought Twitter in October 2022 and renamed it X, is accused of not disclosing his ownership stake of over 5% until April 4, 2022, eleven days after the deadline. The lawsuit also stems from Musk's attempt to back out of the acquisition deal in April 2022, prompting Twitter to sue him. The SEC initiated an investigation into Musk's Twitter stock purchases and related statements in April 2022, before filing the lawsuit. It is unclear if the new administration will continue the lawsuit after the current SEC chair, Gary Gensler, steps down in January 2024.
Elon Musk speaks as part of a campaign town hall in support of Donald Trump in Folsom, Pa., on Oct. 17, 2024., saying he failed to disclose his ownership of Twitter stock in a timely manner in early 2022, before buying the social media site.
Musk started amassing Twitter shares in early 2022, and by March of that year, he owned more than 5%. At this point, the complaint says, he was required by law to disclose his ownership, but he failed to do so until April 4, 11 days after the report was due.After Musk signed a deal to acquire Twitter in April 2022, he tried to back out of it, leading the company to sue him to force him to go through with the acquisition.
Before it filed the lawsuit, the SEC went to court in an attempt to compel Musk to testify as part of an investigation into his purchase of Twitter.
ELON MUSK TWITTER SEC STOCK DISCLOSURE LAWSUIT
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