The President for the umpteenth time promised that he will ensure free, fair and transparent elections in 2023.
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, alleging that he failed to disclose his substantial acquisition of Twitter shares within the required timeframe, thereby violating federal securities laws. The SEC contends that Musk’s delayed disclosure allowed him to purchase additional shares at artificially low prices, resulting in significant financial gains.
According to the SEC, Musk began acquiring Twitter shares in early 2022 and had accumulated more than a 5% stake by March 14, 2022. Under U.S. securities law, investors who surpass a 5% ownership threshold are mandated to file a disclosure with the SEC within ten days. However, Musk allegedly delayed this disclosure until April 4, 2022, exceeding the deadline by 11 days.
The SEC asserts that this delay enabled Musk to continue purchasing Twitter shares at prices that did not reflect his significant ownership stake, thereby saving him at least $150 million. This action, according to the SEC, deprived shareholders who sold their shares during this period of the opportunity to benefit from the price appreciation that typically follows such disclosures.
In response to the lawsuit, Musk’s attorney, Alex Spiro, dismissed the SEC’s allegations as unfounded, describing the lawsuit as a “ticky-tack complaint” and accusing the agency of engaging in a “multi-year campaign of harassment.”
This legal action adds to the ongoing tensions between Musk and the SEC, which have included previous disputes over his social media statements and corporate governance practices. The outcome of this lawsuit could have significant implications for Musk’s business ventures and his interactions with regulatory authorities.
