The Securities and Exchange Commission has filed a lawsuit against Elon Musk alleging that in the lead-up to his acquisition of Twitter in 2022, he illegally failed to disclose he’d amassed a large portion of stock in the company ― allowing him to buy more shares of the platform at “artificially low prices.”
The SEC lawsuit, filed Tuesday, says that before the Tesla CEO finalized his $44 million deal to buy Twitter, which he renamed X, he began to buy up shares in the company. By March 2022, when he’d acquired more than 5% of the company’s common stock, Musk was required to report his ownership within 10 days. When he made that report — one day past the deadline — the stock surged by 27%, the SEC’s lawsuit says.
“During the period that Musk was required to publicly disclose his beneficial ownership but had failed to do so, he spent more than $500 million purchasing additional shares of Twitter common stock,” the lawsuit says. “Because Musk failed to timely…
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