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The US Securities and Exchange Commission has sued the billionaire Elon Musksaying that he failed to disclose his ownership of Twitter stock in time in early 2022, before buying the social media site.
As a result, the SEC claims, Musk was able to pay “at least $150 million” for shares he bought after disclosing his ownership of more than 5 percent of Twitter’s shares. Musk bought Twitter in October 2022 and later named it X.
Musk began collecting Twitter shares in early 2022, and in 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 was unable to do so until April 4, 11 days after the report was made.
Musk’s attorney, Alex Spiro, said in a statement that the lawsuit is “an admission by the SEC that they can’t bring a real case” because Musk “has done nothing wrong.”
He called the lawsuit a “sham.”
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“As the SEC Retracts and Leaves Office – The SEC’s multi-year campaign of harassment against Mr. Musk culminated in the filing of a complaint against Mr. Musk under Section 13(d) for an alleged administrative failure to file a single form – an offense that, even if proven, carries a nominal penalty,” Spiro added.
After Musk signed a deal to acquire Twitter in April 2022, he tried to back out, causing the company to sue him to force him to go ahead with the purchase.
The SEC has said it has authorized an investigation starting in April 2022 into whether antitrust laws were broken in connection with Musk’s purchases of Twitter shares and his statements and SEC filings related to the company.
Before it filed the lawsuit, the SEC went to court in an attempt to compel Musk to testify as part of an investigation into his purchase of Twitter.
The current chairman of the SEC, Gary Gensler, plans to leave his position on January 20 and it is not clear whether the new administration will continue the lawsuit.
& copy 2025 The Canadian Press
