Elon Musk sues by sec for failing to report twitter stake acquisition
Date
1/15/2025 1:44:29 AM
(MENAFN) The tech tycoon Elon Musk is being sued by the US Securities and Exchange Commission (SEC) for allegedly failing to quickly report his initial acquisition of a sizable interest in twitter in early 2022, which allegedly resulted funding loss to investors who sold their shares at lower prices.
The case, which was submitted on Tuesday to a federal court in Washington, DC, says that Musk was legally requested to reveal his ownership of Twitter within 10 days following his stock surpassed the 5 percent threshold on March 24, 2022. Musk pursued to buy more shares from stakeholders who sold their holdings without disclosing his raising ownership, however, until April 4, 2022, when he finally made the announcement.
The SEC claims that this delay made Musk buy Twitter stocks at artificially low prices, underpaying by over USD150 million. The regulator is questing the disgorgement of these alleged gains, along with civil penalties.
Musk’s attorney, Alex Spiro, has ignored the lawsuit as baseless, outlining it part of a “multiyear campaign of harassment” against Musk.
“This action, focusing on an alleged administrative failure to file a single form, is a sham and an admission by the SEC that they cannot bring an actual case,” Spiro said.
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