The US Securities and Exchange Commission has sued billionaire Elon Musk, alleging he failed to timely disclose his ownership of Twitter shares in early 2022, before purchasing the social media site.
As a result, the SEC alleges, Musk was able to pay less “by at least $150 million” for the shares he purchased after he disclosed that he owned more than 5 percent of Twitter shares. Musk bought Twitter in October 2022 and later renamed it X.
Musk began accumulating Twitter shares in early 2022, and by March of that year, he owned more than 5 percent. At this point, the complaint says, he was required by law to disclose his ownership, but he did not do so until April 4, 11 days after the reporting deadline.
Musk's lawyer, Alex Spiro, said in a statement that the lawsuit “is an admission by the SEC that they cannot present a real case” since Musk “has done nothing wrong.”
He called the lawsuit a “farce.”
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“As the SEC withdraws and leaves office, the SEC's multi-year harassment campaign against Mr. Musk culminated in the filing of a single-count complaint against Mr. Musk under Section 13 (d ) for an alleged administrative error in the presentation. only one way: a crime that, even if proven, carries a nominal penalty,” Spiro added.
After Musk signed a deal to acquire Twitter in April 2022, he attempted to pull out, prompting the company to sue him to force him to move forward with the acquisition.
The SEC said that beginning in April 2022, it authorized an investigation into whether any securities laws were violated in connection with Musk's purchases of Twitter stock and his statements and filings with the SEC related to the company.
Before filing the lawsuit, the SEC went to court in an attempt to force Musk to testify as part of an investigation into his purchase of Twitter.
Current SEC Chairman Gary Gensler plans to leave office on Jan. 20, and it is unclear whether the new administration will pursue the lawsuit.
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