403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
US market watchdog takes legal actions against Elon Musk
(MENAFN) The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing him of failing to promptly disclose his Acquisition of a significant stake in Twitter in early 2022. The SEC claims that Musk’s ownership surpassed the 5% threshold on March 24, 2022, which legally required him to disclose the stake within ten days. However, Musk did not file the disclosure until April 4, 2022, during which time he continued purchasing shares from investors who were unaware of his growing involvement.
The SEC argues that this delay allowed Musk to acquire Twitter shares at artificially low prices, causing financial harm to investors who sold their shares at reduced values. The regulatory body is seeking to recover these alleged profits, as well as impose civil penalties.
Musk’s lawyer, Alex Spiro, dismissed the lawsuit, calling it part of a long-running “campaign of harassment” and labeling it a “sham.” Spiro suggested that the SEC's action was based on a minor administrative error rather than a substantial legal case.
This new lawsuit comes amid leadership changes at the SEC, with outgoing Chair Gary Gensler initiating the case before being succeeded by Paul Atkins, a Trump appointee. It remains unclear whether Musk’s connections to the incoming administration could affect the case.
Musk ultimately completed the $44 billion acquisition of Twitter in October 2022 after months of legal disputes and public back-and-forth, later rebranding the platform as X.
The SEC argues that this delay allowed Musk to acquire Twitter shares at artificially low prices, causing financial harm to investors who sold their shares at reduced values. The regulatory body is seeking to recover these alleged profits, as well as impose civil penalties.
Musk’s lawyer, Alex Spiro, dismissed the lawsuit, calling it part of a long-running “campaign of harassment” and labeling it a “sham.” Spiro suggested that the SEC's action was based on a minor administrative error rather than a substantial legal case.
This new lawsuit comes amid leadership changes at the SEC, with outgoing Chair Gary Gensler initiating the case before being succeeded by Paul Atkins, a Trump appointee. It remains unclear whether Musk’s connections to the incoming administration could affect the case.
Musk ultimately completed the $44 billion acquisition of Twitter in October 2022 after months of legal disputes and public back-and-forth, later rebranding the platform as X.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
- Manuka Honey Market Report 2024, Industry Growth, Size, Share, Top Compan...
- Modular Kitchen Market 2024, Industry Growth, Share, Size, Key Players An...
- Acrylamide Production Cost Analysis Report: A Comprehensive Assessment Of...
- Fish Sauce Market 2024, Industry Trends, Growth, Demand And Analysis Repo...
- Australia Foreign Exchange Market Size, Growth, Industry Demand And Forec...
- Cold Pressed Oil Market Trends 2024, Leading Companies Share, Size And Fo...
- Pasta Sauce Market 2024, Industry Growth, Share, Size, Key Players Analys...
Comments
No comment