SEC sues Elon Musk, claiming disclosure failures with Twitter stock
The US Securities and Exchange Commission alleges Musk violated US securities laws by failing to timely disclose that he owned over 5% of Twitter’s stock in early 2022.
Update (Jan. 15, 12:50 am UTC): This article has been updated to add more information from the SEC’s filing and Elon Musk’s public response.
The US Securities and Exchange Commission has sued Elon Musk, saying the world’s richest man failed to disclose “he had acquired beneficial ownership” of Twitter in early 2022, allowing him to purchase shares at lower prices.
The SEC said in a Jan. 14 filing in a Washington, DC, federal court that Musk’s alleged late disclosure of his Twitter (now X) stake allowed him to “continue purchasing shares at artificially low prices” and “underpay by at least $150 million for shares he purchased after his beneficial ownership report was due.”
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Author: Jesse Coghlan
