SEC charges Elon Musk over delayed disclosure of Twitter shares

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against billionaire Elon Musk. The SEC alleges that Musk failed to disclose his significant Twitter shareholdings in early 2022 before acquiring the social media platform.

By not announcing his ownership, Musk reportedly paid “at least $150 million” less for the shares than he should have. The SEC is demanding that Musk repay this amount, along with a penalty.

Musk began purchasing Twitter shares at the beginning of 2022 and held over 5% of the company’s stock by March. He was legally required to disclose his holdings at that time but only did so on April 4, eleven days late.

It remains uncertain whether a trial will take place. Current SEC Chairman Gary Gensler plans to step down on January 20, after which Donald Trump’s administration will take office, with Musk serving as an advisor.

Musk’s lawyer, Alex Spiro, claims that Musk did nothing wrong and that the SEC has been conducting a “campaign” against him for years. Musk spent approximately $44 billion on the acquisition of Twitter, which was finalized in October 2022, and subsequently renamed the platform to X.

Source: NOS

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