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The Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, alleging that he violated securities laws by failing to disclose his ownership stake in Twitter within the required timeframe, enabling him to purchase shares at artificially low prices.
Some shit you should know before you read: Back in 2022, Elon Musk finalized his acquisition of Twitter, now rebranded as X, for a total of $44 billion. Prior to the purchase, Musk had steadily increased his stake in the company, surpassing the 5% ownership threshold in March 2022, which legally required disclosure within 10 days. Musk’s delayed disclosure allowed him to buy additional shares at lower prices, ultimately strengthening his position before submitting a takeover bid for the company in mid-April 2022.

What’s going on now: In a lawsuit filed against Musk, the SEC claimed that the billionaire violated securities laws in 2022 by failing to disclose his ownership stake in Twitter within the required 10-day period after surpassing the 5% threshold. According to the SEC, Musk delayed disclosure until April 4, 2022, at which point he had acquired more than 9% of Twitter’s stock. This delay, the SEC alleges, allowed Musk to continue purchasing shares at “artificially low prices” from unsuspecting investors, underpaying them by more than $150 million. The SEC claims that if Musk had disclosed his holdings on time, the market would have adjusted to his growing ownership, potentially driving up the share price. The agency is seeking a jury trial and demands giving up some of Musk’s “unjust enrichment,“ a civil penalty, and other relief to hold him accountable for alleged securities fraud.
This lawsuit marks the latest chapter in Musk’s long-standing tensions with the SEC. In 2018, the agency charged Musk with making “false and misleading” statements when he tweeted about plans to take Tesla private at $420 per share with “funding secured.” That case ended in a settlement requiring Musk and Tesla to each pay $20 million in fines, with Musk temporarily stepping down as Tesla’s chairman. Musk has repeatedly criticized the SEC since, accusing the agency of harassment and overreach.
In the current case, Alex Spiro, Musk’s lawyer, has dismissed the allegations as baseless, describing the suit as part of a “multi-year campaign of harassment” by the agency. Spiro also said the lawsuit was a “sham” and a “ticky-tack complaint” designed to pressure Musk into a settlement.