WASHINGTON (Diya TV) — The Securities and Exchange Commission charged Elon Musk with cheating investors out of millions of dollars when he delayed the disclosure of a big stake in Twitter, now renamed X.
The SEC has reported that by March 14, 2022, Musk had accumulated a 9.2% stake in Twitter, crossing the 5% threshold where disclosure is necessary within ten days. However, he did not file the necessary Schedule 13D form until April 4, 2022. Allegedly, the delay allowed him to buy extra shares at lower prices, saving him at least $150 million from the other shareholders.
The SEC complaint, filed in federal court, sought these alleged gains alongside civil penalties against Musk. The regulatory body claimed that such a disclosure is very important for market fairness and transparency, which Musk’s actions thwarted.
Misher, an attorney for Musk, dismissed the suit as “completely baseless,” stating that Musk has violated no laws. Musk himself previously referred to the SEC as the “Shortseller Enrichment Commission” while the two engaged in previous disputes.
This lawsuit is the latest in a long list of battles between Musk and the SEC. In 2018, the agency charged him with securities fraud over a tweet in which he said he had finalized funding to take Tesla private, resulting in a settlement that included fines and oversight of his communications related to Tesla.
Musk completed his acquisition of Twitter in October 2022 for approximately $44 billion, subsequently rebranding the platform as X.