SEC sues Musk, alleges failure to properly disclose Twitter ownership

The SEC filed a lawsuit against it Elon Musk Tuesday, accusing the billionaire of committing securities fraud in 2022 by failing to disclose his ownership on Twitter and buying shares at “artificially low prices.”

Musk, who is also the CEO of Tesla and SpaceX, I bought Twitter for $44 billion, then changing the name of the social network to X. Before the acquisition, he had built a position in the company of more than 5%, which would require him to disclose his participation to the public.

According to the SEC’s complaint, Musk did not follow disclosure rules, “allowing him to pay underpayments of at least $150 million for the shares he acquired after his financial ownership report was due.”

The SEC had been to investigate if Musk, or anyone working with him, committed securities fraud in 2022 as Tesla The CEO sold shares in his car company and increased his stake in Twitter before his leveraged buyout. Moss he said in a post on X last month that the SEC issued a “liquidation demand”, pressuring him to accept a settlement that includes a settlement within 48 hours or “face charges on numerous counts” regarding the stock purchase .

This story is unfolding.