Elon Musk Faces Lawsuit Over Delayed Twitter Share Disclosure
Elon Musk is being sued by the US Securities and Exchange Commission (SEC) for allegedly failing to promptly disclose his acquisitions of Twitter stock. The SEC claims that Musk bought more than 5% of the company's shares in March 2022 but did not announce this until April 4, 2022, eleven days past the required deadline. This delay reportedly allowed him to continue accumulating shares at lower prices, resulting in an underpayment of at least $150 million.
The SEC's lawsuit, filed in Washington DC federal court, seeks a civil fine and requires Musk to forfeit profits gained from his delayed disclosures. In response, Musk's attorney asserted that "Mr. Musk has done nothing wrong and everyone sees this sham for what it is."
Following Musk’s eventual disclosure, Twitter's share price surged by over 27%. Later that year, in October 2022, Musk acquired Twitter for $44 billion and subsequently rebranded the platform as X.
Weekly Newsletter
News summary by melangenews