A federal lawsuit has been filed by the Securities and Exchange Commission against Elon Musk for his acquisition of Twitter, alleging a breach of securities laws and saving $150 million through a late disclosure. Read more
Before finalizing the purchase of Twitter for $44 billion, changing its name to X, Musk initially acquired a significant stake in the company without timely disclosure, leading to legal scrutiny.
The SEC criticized Musk for failing to report his stake within the required 10-day period, purchasing over $500 million in shares during the undisclosed period, breaching securities laws.
As the lawsuit unfolds, uncertainty looms with the impending change in SEC leadership and Musk’s rumored involvement in the White House, raising questions about the lawsuit’s outcome.
The SEC alleges Musk’s delayed disclosure resulted in a loss of $150 million for investors and seeks penalties in the form of the profit gained from the late disclosure, along with other sanctions.
