SEC Sues Elon Musk Over X Purchase, Says He Acquired Shares at ‘Artificially Low Prices’
The U.S. Securities and Exchange Commission sued Elon Musk on Tuesday, claiming he committed securities fraud by buying shares of Twitter at “artificially low prices.” Musk did this, the SEC alleges, by failing to timely disclose he had built up a position greater than 5% in the company.
The SEC’s lawsuit said that, by not disclosing he was buying up shares, it allowed Musk to “underpay by at least $150 million” for shares he purchased after his financial beneficial ownership report was due.
SEC rules would have required Musk to disclose he surpassed a 5% ownership stake within 10 calendar days; the SEC said Musk did not disclose he reached that mark until 11 days after the deadline.
Musk ultimately bought Twitter — which he later renamed X — for $44 billion in late 2022.
Alex Spiro, a lawyer for Musk, told Reuters his client “has done nothing wrong and everyone see this sham for what it is.”
The SEC is looking for Musk to pay a civil fine and to pay “disgorgement of his unjust enrichment as a result of his violation.”
Musk is set to become the co-head of president-elect Donald Trump’s newly created Department of Government Efficiency (DOGE) when Trump retakes office on Jan. 20.
You can read the full lawsuit by clicking here.
The post SEC Sues Elon Musk Over X Purchase, Says He Acquired Shares at ‘Artificially Low Prices’ appeared first on TheWrap.