The Securities and Exchange Commission (SEC) continues its $150 million lawsuit against Elon Musk, accusing him of misleading investors during his acquisition of Twitter stock in 2022.
Reasons for the Lawsuit
The SEC filed a lawsuit in January 2025, accusing Elon Musk of securities fraud. The Commission alleges that Musk failed to timely disclose his ownership stake in the company, which exceeded 5%, before completing the purchase, allowing him to undervalue the shares acquired.
Defense's Reaction
Musk's attorney, Alex Spiro, dismissed the lawsuit, stating that Musk has 'done nothing wrong' and described the legal action as a 'sham.' This legal battle comes after years of scrutiny surrounding Musk’s acquisition.
Event Timeline
According to the SEC, Musk was required to report his stake by March 24, 2022. However, he reported it late, leading to a 27% surge in Twitter's stock price after the filing. The SEC also filed a lawsuit in 2023 due to Musk's refusal to testify about the deal.
The ongoing legal battle between the SEC and Elon Musk highlights the complexities and controversies surrounding the Twitter acquisition, potentially impacting market regulation.
