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The Securities and Exchange Commission sued Elon Musk on Tuesday, alleging that the billionaire committed securities fraud in 2022 by not disclosing his ownership in Twitter and buying shares at “artificially low prices.”
Musk, who is also CEO of Tesla and SpaceX, Bought Twitter For $44 billion, he later changed the name of the social network to X. Before the acquisition, he had created a position in the company of more than 5%, which would have required disclosing his holdings to the public.
According to the SEC complaint, Musk did not follow disclosure rules, “allowing him to underpay at least $150 million for the shares he purchased after the beneficial ownership report was due.”
It was the Securities and Exchange Commission Investigation Whether Musk, or anyone else working for him, committed securities fraud in 2022 Tesla The CEO sold shares in his car company and leveraged his stake in Twitter before the leveraged buyout. Musk He said In a post on
Alex Spiro, Musk's lawyer, said in an email statement that the action is an admission by the SEC that they “cannot bring an actual case.” He added that Musk “did nothing wrong” and described the lawsuit as “false” and the result of a “several years-long harassment campaign,” culminating in a “tack complaint.”
Musk is just one week away from a potentially influential role in government, as President-elect Donald Trump's second term begins on January 20. Musk, who was a major financial backer of Trump in the final stages of the campaign, is preparing to lead an advisory group that will focus in part on reducing regulations, including those affecting Musk's various companies.
This story is evolving.
