SEC Accuses Elon Musk of Failing to Disclose Twitter Stock Purchases in 2022

variety.com:

Cynthia Littleton Business Editor The Securities and Exchange Commission filed a lawsuit Tuesday against Elon Musk, accusing the owner of X of failing to properly disclose his purchases of Twitter stock prior to his acquisition of the social media platform in 2022.

The suit, filed in federal court in Washington, D.C., alleges that Musk was required to file a “beneficial ownership” form with the SEC to disclose that he had amassed more than 5% of shares in the company by March 24, 2022.

The SEC complaint states that Musk began buying up Twitter shares early in the year. By March 14, Musk owned more than 5% of the company’s outstanding stock, and thus was required to disclose the size of his stake within 10 days.

The complaint states that Musk’s failure to comply cost other Twitter shareholders at least $150 million because they sold shares at lower prices without knowing that Musk was amassing shares in the company.