SEC Sues Elon Musk Over Delayed Twitter Stock Closure
The SEC lawsuit alleged that the tech billionaire “failed to disclose his 5% ownership stake of Twitter in a timely manner,” violating federal securities law.
SEC Sues Elon Musk Over Delayed Twitter Stock Closure
Just days before Donald Trump’s inauguration as the 47th US President, the Securities and Exchange Commission (SEC) filed a lawsuit against Elon Musk. The complaint alleges that he failed to timely disclose his 5% ownership stake in X (formerly Twitter), thereby violating federal securities laws.
According to the SEC, this delay allowed Musk to increase his stake in Twitter without revealing his intentions, which supposedly enabled him to undervalue his acquisition by over $150 million.
The SEC is seeking a return of the unjust profits Musk gained, along with an additional civil penalty. However, Musk's attorney, Alex Spiro, has dismissed the allegations, labeling them an "admission" that the SEC lacks a solid case.
In fact, this lawsuit comes during Gary Gensler's penultimate week as SEC chairman before he steps down on January 20. Gensler and Musk have had a few disagreements over the last four years, most recently when Musk criticized the SEC's settlement offer for X. However, Musk may confront a friendlier SEC commissioner in just a few weeks when Trump's candidate takes office.
