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

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.

Rewards

More rewards

Discover enhanced rewards on our social media.

Other news

Bitcoin's Sharpe Ratio Declines, Indicating Poor Risk-Adjusted Performance

Recent analysis shows Bitcoin's Sharpe Ratio has moved into negative territory, indicating a decline in risk-adjusted performance.

Rajesh Kumaran hour ago

Bitcoin's MVRV Z-Score Indicates Neutral Valuation

Bitcoin's MVRV Z-Score is currently at 0.49, indicating a neutral valuation regime without signs of capitulation.

Lucas Weissmannan hour ago

Bitcoin Experiences Heightened Volatility Due to Middle East Conflicts.

Bitcoin's price action is increasingly reactive to geopolitical events, leading to heightened volatility in global markets.

Filippo Romanoan hour ago

Uniswap Secures Major Legal Victory in Fraud Case

A federal judge ruled that Uniswap cannot be held liable for fraudulent tokens traded on its platform, marking a significant victory for decentralized finance.