The Securities and Exchange Commission is suing Elon Musk, saying he didn’t disclose ownership of Twitter in time before buying it.
The US Securities and Exchange Commission has sued billionaire Elon Musk, saying he failed to disclose his ownership of Twitter stock in early 2022, before buying the social network.
Because of this, the SEC says, Musk was able to underpay by “at least $150 million” for the shares he bought after he had to disclose his ownership of more than 5% of Twitter. Musk bought Twitter in October 2022 and later renamed it X. Musk began accumulating Twitter shares in early 2022, and by March of that year, he owned more than 5%.
Meanwhile, the complaint says, he was required by law to reveal his identity, but failed to do so until April 4, 11 days after the report was issued. Representatives for X did not immediately return a message for comment.
After Musk signed a deal to acquire Twitter in April 2022, he tried to back out, leading the company to sue him to force him to continue with the acquisition.
The SEC said that starting in April 2022, it has authorized an investigation into whether any securities laws were violated in connection with Musk’s purchase of Twitter stock and his statements and SEC filings related to the company.
Before it filed suit, the SEC went to court in an attempt to compel Musk to testify as part of an investigation into his purchase of Twitter.
The SEC’s current chairman, Gary Gensler, plans to step down on January 20 and it is unclear whether the new administration will continue the case.
