SEC Lawsuit Alleges Musk Violated Securities Regulations After Buying 9% of Twitter Stock

On January 15th, COINOTAG News reported that the U.S. Securities and Exchange Commission (SEC) has initiated legal proceedings against Elon Musk in a Washington, D.C. federal court. The SEC alleges that Musk acquired more than 9% of Twitter’s common stock in March 2022 but failed to timely disclose this information as mandated by federal securities regulations. This non-compliance reportedly enabled Musk to continue purchasing additional shares of Twitter at a diminished market price, effectively yielding a benefit estimated at $1.5 billion. His eventual disclosure regarding his ownership stake occurred on April 4, 2022, coinciding with a significant 27% surge in Twitter’s stock price from the previous day’s close. In defense, Musk’s legal representation has characterized the lawsuit as lacking substance, asserting that Musk acted in accordance with the law, labeling the entire investigation as “a farce.” (Golden Finance)