The U.S. Securities and Exchange Commission (SEC) has filed a new lawsuit against Elon Musk. The lawsuit claims that Musk failed to disclose his ownership of Twitter (X) shares within the legally required time frame when he began purchasing them at the beginning of 2022. The SEC alleges that this delay allowed Musk to acquire the shares at a discount of more than $150 million. Here are the details!
Elon Musk failed to report his stock purchase on time!
Musk began acquiring Twitter shares gradually in early 2022, and by March, he owned more than 5% of the company. According to the SEC’s complaint, Musk missed the legally required disclosure date of March 24, 2022, and only reported his holdings 11 days later, on April 4, 2022. The SEC argues that this delay allowed Musk to buy the shares below market value.
Musk’s lawyer, Alex Spiro, has dismissed the lawsuit as “nonsense and fabrication,” harshly criticizing the SEC. Spiro claims that the SEC has been running a campaign to discredit Musk for years and stated that the issue at hand is merely the lack of an administrative form. “Even if this claim is proven, it only warrants a nominal penalty,” he added.
In April 2022, Musk signed a deal to acquire Twitter, but later tried to back out of the agreement. In response, Twitter sued Musk, forcing him to complete the acquisition. Musk purchased Twitter in October 2022 and later rebranded the platform as X.
SEC Chairman Gary Gensler is set to leave office on January 20, and it remains unclear whether the new administration will continue with the lawsuit. What are your thoughts on Elon Musk’s ongoing legal battles? Feel free to share your opinions in the comments!
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