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SEC Charges Elon Musk With “Ill-Gotten Gains” From Late Disclosure Of Initial Twitter Investment
The SEC said Elon Musk had enriched himself at the expense of Twitter shareholders by not reporting a 5% stake he amassed in Twitter, now X, in time.
The Securities and Exchange Commission filed an action against Elon Musk dating back to his 2022 acquisition of Twitter, now X. alleging that he was “enriched” to the tune of $150 million by not reporting a stake he had amassed in the social media platform within a required five day window and, instead, buying more stock. According to the SEC’s complaint, Musk saved at least $150 million at the expense of Twitter shareholders by failing to file the beneficial ownership report in a timely manner. The complaint further alleges that, due to Musk’s failure to timely file a beneficial ownership report with the SEC, investors who sold Twitter common stock between March 25, 2022 and April 1, 2022 did so at artificially low prices, thereby suffering substantial economic harm.
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