Elon Musk in Court: Delay in Disclosing Twitter Stake Leads to SEC Lawsuit

by Giorgi Kostiuk

10 months ago

The SEC has filed a lawsuit against Elon Musk for allegedly violating federal securities laws by delaying the disclosure of his stake in Twitter.

Allegations of Delayed Disclosure

Filed in a Washington D.C. federal court, the lawsuit accuses Musk of failing to disclose his purchase of over 5% of Twitter shares within the required 10-day period. Musk disclosed his 9.2% stake only on April 4, 2022, which the SEC claims enabled him to acquire over $500 million worth of Twitter shares at discounted prices.

Investors must report stakes within 10 calendar days of surpassing the 5% threshold.

Financial Impact and Investor Consequences

The SEC contends that Musk's delay harmed other investors by preventing them from making informed decisions about Twitter's stock. The SEC claims that Musk underpaid by at least $150 million for shares purchased after the filing deadline.

Musk's Response and Criticism of the SEC

Elon Musk called the SEC a "totally broken" organization. His legal team, led by Alex Spiro, argues that the lawsuit represents a "multi-year campaign of harassment" and if proven carries a nominal penalty.

"It is merely an administrative failure to file a single form," said Alex Spiro, Musk's attorney.

Musk's ongoing feud with the SEC continues. If the SEC wins, Musk may face civil penalties, including fines and possible disgorgement of profits.

Rewards

More rewards

Discover enhanced rewards on our social media.

Other news

Filecoin's Past Surges Linked to Utility Demand

Filecoin's previous surges were often linked to tech roadmap milestones and utility demand, with experts suggesting that outcomes may mirror previous trends with speculative volatility.

Lucas Weissmann6 minutes ago

Filecoin Surges 9% Amid Integration Updates

Filecoin has broken a prolonged downtrend, surging 9% due to new momentum from technical and fundamental developments.

Emily Carter6 minutes ago

Unverified Leadership Changes at the Federal Reserve

Reports of leadership changes at the Federal Reserve remain unverified, with no official confirmations from primary sources.

Filippo Romano6 minutes ago

Bitwise CIO Highlights Improved Value Capture in Major Crypto Tokens

Bitwise CIO Matt Hougan highlights improvements in value capture for major crypto tokens like UNI, ETH, and XRP, emphasizing their potential amidst market pullbacks.