SEC Sues Elon Musk, Says He Failed to Disclose Twitter Ownership in Time Before Purchase: NPR

The U.S. Securities and Exchange Commission has sued billionaire Elon Musk, claiming he failed to timely disclose his ownership of Twitter stock in early 2022, before purchasing the social networking site.

As a result, according to the SEC, Musk was able to underpay “at least $150 million” for the shares he purchased when he should have disclosed his ownership of more than 5% of Twitter’s stock. Musk purchased Twitter in October 2022 and later renamed it X.

Musk began accumulating shares in Twitter in early 2022, and by March of that year he owned more than 5%. At that point, the complaint says, the law required him to disclose his property, but he didn’t do so until April 4, 11 days after the report’s deadline.

Representatives for X and Musk did not immediately return messages for comment.

After Musk signed a deal to acquire Twitter in April 2022, he attempted to back out of it, leading the company to sue him to force him to complete the acquisition.

The SEC said that beginning in April 2022, it authorized an investigation into whether any securities laws were violated in connection with Musk’s purchases of Twitter stock and his statements and filings with the SEC related to the company.

Before filing suit, the SEC went to court to try to compel Musk to testify in an investigation into his purchase of Twitter.

Current SEC Chairman Gary Gensler plans to leave his post on January 20 and it is unclear whether the new administration will pursue the lawsuit.