The U.S. Securities and Exchange Commission (SEC) has sued Elon Musk, accusing him of failing to disclose his purchase of Twitter shares within the legally mandated timeline.
The lawsuit, filed in federal court in Washington on Jan. 14, centers on Musk’s acquisition of more than 5 percent of Twitter’s common stock in early 2022, a transaction that was not publicly disclosed until weeks later. Federal securities law requires investors who acquire more than 5 percent of a company’s stock to file a disclosure with the SEC within 10 days.
The SEC alleges in the complaint that by filing the disclosure 11 days past the mandated deadline, Musk was able to underpay by at least $150 million for subsequent tranches of stock that he bought before filing the required disclosure on April 4, 2022….