SEC Sues Elon Musk Over Twitter Stock Disclosure

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing him of failing to timely disclose his ownership of over 5% of Twitter's shares in early 2022, which allegedly allowed him to purchase additional shares at artificially low prices. The SEC claims Musk did not report his stake until April 4, 2022, 11 days after the required deadline, by which time his ownership had exceeded 9%. This delay reportedly resulted in Musk underpaying Twitter investors by more than $150 million. The lawsuit follows a multi-year investigation into Musk's stock purchases leading up to his $44 billion acquisition of Twitter in October 2022. Musk's lawyer has vehemently denied any wrongdoing, calling the lawsuit a sham. The SEC is seeking a court order for Musk to pay fines related to the alleged violations.