• 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

Emerging Technologies on XRP Ledger Could Boost Adoption

chest

Technological advancements around the XRP Ledger, including zero-knowledge proof capabilities and the DNA Protocol project, may drive increased adoption by enabling institutions to verify identity and regulatory requirements without exposing private data.

user avatarArif Mukhtar

Ethereum Leads the Way in Real-World Asset Tokenization

chest

Ethereum has emerged as the leader in the tokenization of real-world assets (RWA), boasting a market share of 67% in this sector.

user avatarMaria Gutierrez

Iran Launches Bitcoin-Backed Insurance Service Amid War

chest

Iran has introduced a Bitcoin-backed insurance service for shipping in the Strait of Hormuz as it seeks to navigate US sanctions.

user avatarDavid Robinson

US Inflation Rises Amid Ongoing US-Iran War

chest

US inflation rates are climbing to multi-year highs, influenced by the ongoing US-Iran conflict.

user avatarJacob Williams

US-Iran War Continues with Threats of New Strikes

chest

US President Donald Trump threatens new military action against Iran as the US-Iran war approaches three months without a peace deal.

user avatarAndrew Smith

Bankr Confirms Breach and Pledges Reimbursement

chest

Bankr has confirmed a security breach affecting 14 wallets, leading to unauthorized access and significant losses for users. The platform pledged to cover all losses and advised affected users to check for malware.

user avatarSon Min-ho

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.