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After more than two years of investigation, the Securities and Exchange Commission Elon Musk in his of Twitter stock he accumulated before announcing his intention to acquire the company in 2022.
In a court filing, the SEC said Musk filed SEC documents disclosing his purchase of Twitter shares 11 days after the SEC-mandated deadline to do so. This, according to the regulator, allowed him to buy more Twitter stock at a time when other investors were unaware of his involvement in the company.
From the lawsuit:
At a time when Musk was required to publicly disclose his beneficial ownership but failed to do so, he spent more than $500 million to buy additional shares of Twitter’s common stock. Because Musk failed to timely disclose his beneficial ownership, he was able to make these purchases from the unsuspecting public at artificially low prices, without showing the undisclosed material information on Musk’s beneficial ownership of more than five percent of Twitter common stock and investments. purpose In total, Musk shorted Twitter investors more than $150 million for his purchases of Twitter common stock during this period. Investors who sold Twitter’s common stock at this time did so at artificially low prices and thus suffered significant economic damage.
The regulator has been investigating Musk for years, and has long been at odds with the owner of X. At one point, the SEC in an attempt to stall and use “gamesmanship” to delay the investigation into his investment in Twitter. Last month, Musk shared in a letter addressed to SEC Chair Gary Gensler in which Musk’s lawyer accused the regulator of “six years of harassment” targeting Musk. The letter shows that Musk rejected a settlement offer from the SEC related to the Twitter investigation
X did not immediately respond to a request for comment.
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