US market watchdog files lawsuit against Elon Musk
Date
1/18/2025 7:21:31 AM
(MENAFN) The US Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing him of failing to disclose his significant stake in twitter in a timely manner in early 2022. According to the complaint, filed on Tuesday in a Washington DC federal court, Musk’s ownership exceeded the 5% threshold on March 24, 2022, triggering a legal obligation to disclose his stake within ten days. However, Musk did not file the disclosure until April 4, 2022, during which time he continued to acquire additional shares, potentially causing investors to sell at lower prices.
The SEC claims that Musk’s delay allowed him to purchase Twitter shares at artificially low prices, underpaying by more than $150 million. The agency is seeking the return of these alleged profits, as well as civil penalties.
Musk’s attorney, Alex Spiro, dismissed the lawsuit as a baseless attack, calling it part of a “multiyear campaign of harassment” against the billionaire. Musk’s legal troubles with the SEC are not new; in 2018, he reached a settlement over a tweet about taking Tesla private, which resulted in fines and increased oversight of his public communications.
This latest lawsuit comes at a time when SEC leadership is transitioning, with Gary Gensler stepping down and Paul Atkins, appointed by President-elect Donald Trump, set to take over. Musk’s connections with the incoming administration, including his new role leading the Department of Government Efficiency (DOGE), could have an impact on the case.
Musk ultimately completed his acquisition of Twitter for $44 billion on October 27, 2022, following months of legal disputes. He then took the company private, made significant operational changes, and rebranded it as X.
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