Catenaa, Thursday, January 16, 2025 – The US Securities and Exchange Commission (SEC) filed a lawsuit Tuesday against Elon Musk, accusing the billionaire of failing to disclose his significant stake in Twitter on time, allegedly saving $150 million in share purchases.
SEC rules require investors to report holdings exceeding 5% within 10 days.
Musk reportedly delayed the disclosure by 21 days after surpassing the threshold in 2022, the agency said.
The SEC claims Musk’s actions caused “substantial economic harm to investors” and allowed him to acquire shares at artificially low prices. The regulator seeks to recover alleged unjust profits and impose penalties.
Musk, who later bought Twitter for $44 billion and rebranded it as X, criticized the lawsuit as a “sham” and accused the SEC of harassment.
The SEC’s suit follows longstanding tensions between the regulator and Musk, including a 2018 settlement over Musk’s tweets about taking Tesla private.
This lawsuit comes as SEC Chairman Gary Gensler prepares to step down, citing President-elect Donald Trump’s plans to replace him upon taking office. The SEC’s enforcement under Gensler often clashed with Musk, a Trump ally.
Twitter’s stock surged by 27% when Musk’s stake became public in April 2022, highlighting the significance of timely disclosures in financial markets.
