• 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

XRP Ledger Launches Permissioned DEX to Boost Institutional Adoption

chest

The XRP Ledger has activated the Permissioned DEX amendment to enhance compliance for institutional trading.

user avatarKenji Takahashi

Australian Executive Faces Sentencing for Selling Cyber Tools to Russia

chest

Peter Williams, an Australian executive, pleaded guilty to selling sensitive cyber tools to a Russian broker, raising concerns about intelligence security among Five Eyes allies.

user avatarMaria Fernandez

Cardano Sees Significant Drop in Project Launches

chest

The Cardano network has seen a significant decline in project launches since 2021, raising concerns about future development and focusing on long-term adoption.

user avatarGustavo Mendoza

Potential Fractal Pattern Offers Hope for Ethereum's Recovery

chest

A fractal pattern suggests a potential for a larger breakout in Ethereum's price movement, indicating a transition from accumulation to markup.

user avatarRajesh Kumar

Grayscale Boosts Cardano Holdings Despite Price Drop

chest

Grayscale Investments has increased its allocations to Cardano (ADA) despite a price drop, indicating renewed interest from institutional and retail investors.

user avatarMiguel Rodriguez

Ethereum Market Shows Signs of Cooling as Temperature Approaches Cold Levels

chest

Recent analysis by Alphractal indicates that Ethereum's market temperature is nearing cold levels, suggesting a potential for long-term accumulation.

user avatarLuis Flores

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.