SEC files lawsuit against Elon Musk over Twitter stock disclosure delay
Date
1/15/2025 7:19:44 AM
(MENAFN) The US Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, owner of X (formerly Twitter), regarding stock purchases he made in 2022.
According to the complaint, Musk failed to disclose on time that he had acquired more than 5 percent of Twitter’s common stock in March 2022. The SEC alleged this delay allowed him to continue buying shares at an artificially low price, resulting in an underpayment of USD150 million.
Under SEC regulations, investors holding over 5 percent of a company’s stock must report their stake within 10 days. However, the agency claimed Musk only disclosed his holdings 11 days past the deadline, by which time he had increased his ownership to 9 percent. Twitter’s stock price surged immediately after Musk’s disclosure.
Musk initiated his acquisition of Twitter in April 2022, completing the USD44 billion purchase in October of that year.
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