The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, the world’s richest man, alleging that his purchase of Twitter shares in 2022 violated federal securities laws. According to the SEC, Musk failed to disclose his acquisition of more than 5% of Twitter’s outstanding shares in a timely manner, as required by law.
The SEC claims that Musk’s omission allowed him to continue purchasing shares at artificially low prices, resulting in an underpayment of at least $150 million for shares purchased after the deadline for disclosing his beneficial ownership report. This lawsuit is just the latest in a series of legal challenges facing Musk, who has been at the center of numerous controversies since acquiring Twitter.
Musk’s role on the social network has led to various legal actions, including a lawsuit filed by shareholders accusing him of disclosing his 5% stake in Twitter too late. The SEC’s lawsuit alleges that Musk’s actions violated federal securities laws, specifically Section 13(d) of the Securities Exchange Act of 1934.
The SEC’s action against Musk is a significant development in the ongoing scrutiny of his business dealings. As the investigation continues, Musk faces the possibility of significant financial penalties and reputational damage.
In related news, Musk has faced criticism from European leaders for his meddling in politics and online attacks. The Norwegian Prime Minister has warned Musk against interfering in European politics, while TikTok has denied rumors of a potential sale to Musk. As the situation unfolds, one thing is clear: Elon Musk remains a major figure in the business world, and his actions will continue to be closely watched by regulators, investors, and the public alike.
