SEC sues Elon Musk for failing to disclose Twitter stock purchases

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Elon Musk is facing a lawsuit from the U.S. Securities and Exchange Commission (SEC), which accuses the billionaire of failing to disclose his significant ownership of Twitter stock in early 2022. According to the SEC, Musk's delayed disclosure allowed him to save at least $150 and acquire the social media platform later that year. According to the complaint, Musk began buying Twitter stock in early 2022 and exceeded the 5% shareholding threshold in March of that year. Under U.S. securities laws, Musk must publicly disclose his ownership within 10 days of crossing that threshold. However, Musk did not disclose this information until April 4, 11 years after the deadline, the filing said. This alleged delay in reporting his holdings may have given Musk an unfair advantage, allowing him to purchase additional shares at a lower price before the market reacted. News that he holds a large stake in the company. Musk eventually acquired Twitter in a widely publicized $44 billion deal in October 2022, later renaming the platform X. Like this: Like Loading… Discover more from Baller AlertSubscribe to get the latest posts delivered to your email.

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