The SEC Sues Musk: Failure to Properly Disclose Twitter Stock Purchases, Missing Out on $150 Million

BlockBeats News, January 15th. On Tuesday, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit in a Washington, D.C. federal court, accusing Musk of violating securities regulations. The SEC alleged that Musk purchased over 9% of Twitter's common stock in March 2022 but failed to disclose this information in a timely manner, violating federal securities laws. 11 days later, Musk finally publicly disclosed his beneficial ownership in a report submitted to the SEC on April 4, 2022. This delay allowed Musk to continue purchasing Twitter shares at an artificially depressed price, saving him at least $1.5 billion. On April 4, 2022, Twitter's stock price rose by over 27% from the previous day's closing price. Musk's lawyer responded that Musk had done nothing wrong and that the lawsuit was "a farce." (Golden Finance)