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

by Giorgi Kostiuk

2 years 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.

Tier I

Sector: #18291

Sealed Cache Room

Resource Cache

Tier I

Requires 25% Tier Progress to Claim

Meme Cache

Tier I

Requires 50% Tier Progress to Claim

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, caches will be stored in your inventory and can be opened with Keys.

Tier I

Sector: #18291

25%

50%

75%

100%

Tier II

Survivors rescued:

0 / 600

Survivors

0/0

Transmit Signal

Broadcast this sector's coordinates to other rescuers.

Other news

AMD's Gaming Division Struggles Amid AI Market Concerns

AMD's gaming division faces challenges with a 31% revenue dip, raising concerns about its ability to protect stock value amid potential AI market fluctuations.

Satoshi Nakamura2 hours ago

Michael Burry Warns of Potential AI Bubble Burst

Michael Burry warns of a potential AI bubble burst that could lead to significant losses in tech stocks, particularly for companies like AMD.

Nguyen Van Long2 hours ago

Nike Stock Hits 12-Year Low Amid Rebound Speculation

Nike's stock closed at a 12-year low of $39.09, raising concerns about its future performance and potential for a rebound.

Jesper Sørensen10 hours ago

Payward Joins Project Glasswing to Boost Cybersecurity Efforts

Payward, the parent company of Kraken, has joined Anthropics Project Glasswing to enhance cybersecurity by utilizing Claude Mythos 5 for identifying security vulnerabilities.