US markets watchdog sues Elon Musk over Twitter stake disclosure

The US Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing the billionaire of failing to disclose his acquisition of a significant stake in Twitter within the required timeframe.

The regulator alleged that this delay allowed Musk to purchase shares at “artificially low prices,” saving him $150m (£123m).

Under SEC rules, investors must report holdings exceeding 5% within 10 days. The lawsuit claims Musk waited 21 days after crossing the threshold to make his purchase public. According to the SEC, this delay caused “substantial economic harm to investors.”

Musk, who acquired Twitter for $44bn in October 2022 and rebranded it as X, criticised the regulator in a social media post, calling it a “totally broken organisation” that wastes time on lawsuits while “so many actual crimes… go unpunished.”

In a statement to BBC News, Musk’s lawyer, Alex Spiro, dismissed the case as a “sham” and “a campaign of harassment” against his…

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US markets watchdog sues Elon Musk over Twitter stake disclosure

 

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