SEC sues Elon Musk, alleging failure to properly disclose Twitter ownership
SUMMARY
The SEC has filed a lawsuit against Elon Musk, accusing him of securities fraud for failing to disclose his 5% ownership in Twitter in 2022, as required by law. Musk allegedly delayed the disclosure, enabling him to purchase shares at artificially low prices, underpaying by over $150 million. Musk eventually acquired Twitter for $44 billion, rebranding it as X. The SEC claims Musk crossed the 5% ownership threshold in March 2022 but delayed filing until April 4, during which Twitter’s stock surged 27%. Musk’s lawyer dismissed the suit as a baseless “harassment campaign.” Separately, the Oklahoma Firefighters Pension Fund sued Musk for misleading shareholders about his intentions. Musk, who supported President-elect Trump’s campaign, is set to lead a regulatory advisory group in Trump’s administration. SEC Chair Gary Gensler announced his resignation following Trump’s election, amid vows to overhaul regulatory bodies.
