The US Securities and Exchange Commission (SEC) has sued Elon Musk, accusing him of defrauding Twitter (now X) shareholders of more than $150 million in 2022. Bloomberg reported this.
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In the lawsuit, the SEC alleges that the billionaire failed to promptly notify that his Twitter stake exceeded 5% in March 2022, reaching 9%. Musk was required to disclose his 5% or more stake within 10 days of the deal under Rule 13(d), but he repeatedly ignored this obligation.
The businessman reported the action 11 days later, causing the value of Twitter shares to increase by 27%, according to the lawsuit. The SEC went to court to force Musk to pay a fine and return profits the commission believes he unfairly received from purchasing the securities.
The billionaire’s lawyer, Alex Shpiro, called the SEC’s lawsuit an “admission” that the agency cannot present a “real case” because it is baseless. Shpiro noted that previously, in cases of similar violations committed by others, the regulator typically asked for a “reasonable” fine of $100,000 or less.
The SEC launched an investigation against Musk for his purchase of Twitter shares in 2022, sources told the WSJ. The billionaire closed the deal to acquire the social network that same year, the deal amounted to $44 billion. In 2023, Twitter was renamed X.
Author:
Bogdan Muzychenko
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
