Important points
- The SEC sued Elon Musk for failing to disclose his purchase of Twitter stock before acquiring the platform.
- Musk's lawyers have argued that the SEC's lawsuit is baseless, suggesting no wrongdoing took place.
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According to a Jan. 14 filing first shared, the U.S. SEC determined in a timely manner that Elon Musk purchased more than 5% of Twitter (now X) stock before acquiring the social media platform. Filed a lawsuit in federal court against Elon Musk for failing to disclose information. From DB News.
The complaint, filed in federal court in Washington, D.C., alleges that Musk's delayed disclosure after accumulating more than 5% ownership allowed him to “pay for shares purchased after the deadline for filing financial beneficial ownership reports.” The lawsuit alleges that the company underpaid the company by at least $150 million.
Musk later bought Twitter for $44 billion and changed the company's name to X.
Musk's lawyer, Alex Spiro, said the SEC would not pursue an “actual lawsuit” because Musk “did nothing wrong and everyone sees this charlatanism as normal.” The lawsuit was dismissed, saying it was an “admission” that it could not be filed.
“As the SEC retreats and steps down, the SEC’s multi-year harassment campaign against Mr. Musk ends with the filing of a single complaint against Mr. Musk under Section 13(d) for alleged administrative failures. culminated in a single form of offense that carries a nominal penalty even if proven,'' Spiro said in a statement.
This is a developing story.
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