Elon Musk Sued by SEC Over Delayed Disclosure in Twitter Stock Purchase

The SEC alleges Musk violated securities law by failing to disclose his 5% stake in Twitter on time, saving $150 million and causing financial harm to shareholders.

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing him of failing to disclose his acquisition of a 5% stake in Twitter within the required 10-day period in 2022.
The SEC claims Musk's delayed disclosure allowed him to purchase additional Twitter shares at a lower price, saving him over $150 million and harming shareholders who sold before the information became public.
Musk's disclosure, made 11 days late on April 4, 2022, revealed a 9% stake in Twitter, which caused the stock price to surge by 27%.
The SEC seeks repayment of the $150 million plus additional penalties, though Musk's attorney denies any wrongdoing and characterizes the lawsuit as part of a long-standing campaign against Musk.
The lawsuit's future is uncertain as the SEC's leadership is expected to change with the inauguration of Donald Trump as U.S. president on January 20, 2025, potentially impacting the case's trajectory.

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