Connect with us

Hi, what are you looking for?

Elon musk
Elon musk

Cryptocurrency

SEC has filed a lawsuit against Elon Musk for Twitter stock disclosure delays

The US Securities and Exchange Commission (SEC) has launched a complaint against Elon Musk for failing to disclose his large Twitter investment in early 2022. The SEC says that Musk’s delayed filing enabled him to buy shares at artificially low prices, resulting in a loss of at least $150 million for Twitter stockholders.

Elon Musk is facing legal action from the US Securities and Exchange Commission (SEC) for allegedly breaking securities laws when acquiring Twitter stock in early 2022. According to the SEC, Musk did not file a timely report about owning more than 5% of Twitter’s shares, as required by law. This omission enabled him to purchase additional shares at a lesser price, resulting in a considerable financial gain.

According to the SEC’s complaint, Musk owned more than 5% of Twitter stock by March 2022, but he failed to disclose this ownership until April 4, 2022, 11 days after the necessary filing deadline. Musk allegedly saved at least $150 million by continuing to buy shares at artificially low rates due to the delay.

Just before the SEC’s leadership changes, Musk filed the case. Musk responded by dismissing the complaint as unfounded, calling the SEC a “totally broken organization” and slamming its attention on his case over more critical problems.

Musk’s legal team has also referred to the complaint as a “sham,” alleging that the SEC’s long-running efforts against Musk have finally resulted in a weak case. They believe that Musk has done nothing wrong and that the SEC’s complaint is without merit.

This court dispute is part of a larger set of activities stemming from Musk’s $44 billion purchase of Twitter in 2022, during which time he took the firm private, renamed it X, and significantly altered its operations and content standards. The SEC seeks both financial penalties and a jury trial.

author avatar
Sagar Saini
A dedicated freelance blogger with a strong passion for finance and business, With a keen interest in the world of cryptocurrency.
Advertisement

You May Also Like

Business

A legal dispute has broken out over the US Treasury Department purportedly giving Elon Musk's Department of Government Efficiency (DOGE) unprecedented access to sensitive...

Cryptocurrency

Semler Scientific, a healthcare technology corporation, has increased its Bitcoin portfolio by purchasing 871 BTC for $88.5 million. With this transaction, the corporation now...

Business

Blocksquare has established a pioneering real estate tokenization framework in Luxembourg that combines blockchain technology with land registries to provide legally binding property rights....

Business

Telegram's choice to exclusively use The Open Network (TON) blockchain for Web3 services has sparked discussion in the crypto world. While some see it...

polkadot
Polkadot (DOT) $ 4.62 1.75%
bitcoin
Bitcoin (BTC) $ 96,796.93 0.08%
ethereum
Ethereum (ETH) $ 2,646.39 2.04%
cardano
Cardano (ADA) $ 0.712729 0.81%
xrp
XRP (XRP) $ 2.42 3.41%
stellar
Stellar (XLM) $ 0.33079 3.08%
litecoin
Litecoin (LTC) $ 104.17 0.97%