The SEC has filed a lawsuit against Elon Musk, focusing on his alleged failure to disclose his Twitter stock acquisition before attempting to purchase the company.
Review of SEC Actions
Five SEC commissioners voted on whether to sue Musk, with four in favor. Musk is accused of not disclosing his stock acquisition on time. U.S. law requires investors owning over 5% of a company's shares to disclose within 10 days, but Musk delayed to 21 days, allowing purchase at lower prices.
Prolonged Investigation Against Musk
The investigation was prolonged due to delays from Musk. He agreed to two inquiries in 2022 but refused a third, prompting the SEC to seek court assistance for evidence. Musk claims the delay was due to misconstruing disclosure rules.
X Recovers Market Value
X, formerly Twitter, restored its market value to $44 billion thanks to the return of advertisers like Apple and Amazon. Additionally, investors, including Musk, infused extra funds into the platform.
The conflict between the SEC and Elon Musk highlights issues with disclosure obligations and possible political influences.
