SEC Sues Elon Musk Over $150 Million Twitter Stock Acquisition

January 15, 2025 Emma Grace Business, Finance, Social Media, US Local News 0

Elon Musk's $150 Million Twitter Stock Deal Sparks SEC Lawsuit
Elon Musk's $150 Million Twitter Stock Deal Sparks SEC Lawsuit

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing the billionaire of misleading shareholders during his acquisition of Twitter stock in 2022.

According to the SEC, Musk failed to disclose his ownership of more than 5% of Twitter’s shares within the required timeframe, allowing him to purchase additional shares at artificially low prices.

The Deceptive Scheme

The SEC’s complaint alleges that Musk began acquiring Twitter shares in early 2022 and had surpassed the 5% ownership threshold by March of that year.

However, he did not disclose his ownership until April 4, 11 days after the report was due. This delay enabled Musk to continue buying shares at prices that did not reflect his considerable stake in the company, resulting in an estimated underpayment of $150 million.

See Also:  Crypto founder Do Kwon denies he’s on the run despite Singapore police saying he’s gone

Legal and Financial Implications

The SEC’s lawsuit, filed in federal court in Washington D.C., claims that Musk’s actions violated federal securities laws.

The complaint seeks permanent injunctive relief, disgorgement of ill-gotten gains, and civil penalties. Musk’s attorney, Alex Spiro, has dismissed the allegations, describing the lawsuit as part of a “multi-year campaign of harassment” by the SEC.

Musk’s Response and Ongoing Legal Battles

Musk’s legal team argues that the SEC’s case is based on an administrative oversight and lacks substantial merit. Spiro contends that the issue revolves around the failure to file a single form on time and that Musk has done nothing wrong.

See Also:  How To Find The Best New Mexico Contract Disputes Attorneys

This lawsuit adds to Musk’s ongoing legal challenges, including previous SEC investigations and fines related to his “funding secured” tweet in 2018.

Related Stories:

Elon musk wife (3)Elon Musk Poised to Step Down as Twitter CEO after Public Rejects Him in a Poll Elon Musk Faces Backlash Over XRP Account SuspensionElon Musk considering bringing in partners on Twitter bid, sources say – New York Post Elon Musk's tweets results in higher crypto valueElon Musk Wants Twitter To Be More Like TikTok And WeChat Dogecoin Explodes 30% to 5-Month High After the Musk-Twitter DealDoge Price Surges As Elon Musk New Tweet Confirms Dogecoin Twitter Acceptance Is Close Elon Musk says 28,700 bottles, $2 million worth of ‘Burnt Hair’ perfume sold on first dayElon Musk says 28,700 bottles, $2 million worth of ‘Burnt Hair’ perfume sold on first day Elon Musk Wants to Remove Twitter's Account Blocking AbilityElon Musk Wants to Remove Twitter’s Account Blocking Ability Elon Musk taunts Twitter-holdout Trump with crude memeElon Musk taunts Twitter-holdout Trump with crude meme Elon Musk subpoenas Twitter whistleblower ahead of trialElon Musk subpoenas Twitter whistleblower ahead of trial
About Emma Grace 170 Articles
Emma Grace is a well-known author with over 5 years of experience. She has written much informative content for a Perfect Essay Writing website. She has a lot of creative potential and understands how to make compelling content.

Be the first to comment

Leave a Reply

Your email address will not be published.