• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

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

user avatar

by Giorgi Kostiuk

a year 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.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

ZachXBT Accuses LAB of Insider Trading and Market Manipulation

chest

Crypto investigator ZachXBT accuses LAB of insider trading and market manipulation, claiming insiders control over 95% of the token supply.

user avatarZainab Kamara

Marex Group Boosts XRP ETF Holdings, Stock Surges

chest

Marex Group disclosed a significant position in XRP ETFs, holding 94 million across two funds, leading to a 15% stock increase.

user avatarSon Min-ho

Ethereum Trades at Critical Long-Term Pivot

chest

Ethereum is trading around 2,250, a historically significant price region that has acted as both support and resistance.

user avatarAyman Ben Youssef

Divergence in Ethereum Spot and Derivatives Markets

chest

The Ethereum derivatives market shows signs of growing confidence, contrasting with the turbulent spot market activity.

user avatarTando Nkube

Ethereum Consolidation Amid Significant Capital Movements

chest

Ethereum is currently consolidating between 2,200 and 2,400 as market participants await a decisive break in either direction, with notable capital movements observed on Binance.

user avatarKofi Adjeman

Hyperliquid's Oil Trading Volume Raises Regulatory Concerns

chest

Hyperliquid's oil-linked perpetual contract has generated over $12 billion in trading volume, raising concerns about its potential influence on global oil prices and the challenges of regulating a continuously trading crypto market.

user avatarNguyen Van Long

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.