SEC Sues Elon Musk Over Alleged Twitter Stock Disclosure Failure
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against billionaire Elon Musk, accusing him of failing to disclose his ownership of Twitter stock in a timely manner in early 2022. According to the SEC, Musk began acquiring Twitter shares in January 2022 and owned more than 5% by March of that year, which mandated a legal disclosure by April 4. However, he did not file the required disclosure until 11 days after the deadline.
The SEC claims this delay allowed Musk to underpay by at least $150 million when he purchased Twitter later that year. Musk acquired Twitter in October 2022 and subsequently rebranded it as X. Musk's attorney, Alex Spiro, contended that the lawsuit was "a sham" and that Musk has committed no wrongdoing.
The SEC's investigation into Musk's stock purchases began in April 2022. Before the lawsuit was filed, the SEC sought to compel Musk to testify regarding his transactions. With the SEC chair, Gary Gensler, set to step down on January 20, it remains uncertain if the new administration will pursue the lawsuit further.
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