{"id":20346,"date":"2025-01-15T14:42:06","date_gmt":"2025-01-15T12:42:06","guid":{"rendered":"https:\/\/forklog.com\/en\/sec-sues-elon-musk-over-late-disclosure-of-twitter-stake\/"},"modified":"2025-01-15T14:42:06","modified_gmt":"2025-01-15T12:42:06","slug":"sec-sues-elon-musk-over-late-disclosure-of-twitter-stake","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/sec-sues-elon-musk-over-late-disclosure-of-twitter-stake\/","title":{"rendered":"SEC sues Elon Musk over late disclosure of Twitter stake"},"content":{"rendered":"<p>On January 14, the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> <a href=\"https:\/\/www.courtlistener.com\/docket\/69544737\/1\/securities-and-exchange-commission-v-musk\/\">filed suit<\/a> against Elon Musk, accusing him of failing to disclose on time his beneficial ownership in Twitter (X).\u00a0<\/p>\n<p>The regulator says the billionaire began buying the social network\u2019s stock in early 2022 and, by March 14 that year, held more than 5% of the outstanding shares. He was required to notify the Commission within ten days (by March 24, 2022) but submitted the report 11 days late, on April 4, 2022.<\/p>\n<p>According to the SEC\u2019s findings, as a result Musk continued \u201cto purchase shares at artificially depressed prices\u201d, spending more than $500m and \u201cunderpaying at least $150m\u201d.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cOn the day the report was filed, the price of Twitter\u2019s securities rose by more than 27% compared with the previous day\u2019s closing price,\u201d the regulator noted.<\/p>\n<\/blockquote>\n<p>The Commission sought disgorgement of \u201cill-gotten gains\u201d along with a civil penalty.<\/p>\n<p>Musk responded to the suit, calling the SEC \u201ca totally broken organization\u201d.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Totally broken organization. <\/p>\n<p>They spend their time on shit like this when there are so many actual crimes that go unpunished.<\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1879322286291054653?ref_src=twsrc%5Etfw\">January 15, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThey spend their time on shit like this, while many real crimes go unpunished,\u201d he wrote on X.<\/p>\n<\/blockquote>\n<p>The billionaire\u2019s lawyer, Alex Spiro, argued that the agency\u2019s actions are \u201can admission that they cannot bring a real case\u201d.<\/p>\n<p>In April 2022, Musk became Twitter\u2019s largest shareholder after purchasing 9.2% of the stock for $2.89bn. He later offered to buy the platform for $43bn to create \u201can inclusive arena for free speech\u201d.<\/p>\n<p>The $44bn deal closed in October. The company\u2019s previous CEO Parag Agrawal and its chief financial officer Ned Segal left the headquarters.<\/p>\n<p>In October 2023, the SEC sued Musk for refusing to testify about the acquisition of X. In response he called for a \u201ccomprehensive review\u201d of the agency\u2019s activities and the creation of a commission to take action against those who \u201cabuse their power for personal and political purposes\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On January 14, the SEC filed suit against Elon Musk, accusing him of failing to disclose on time his beneficial ownership in Twitter (X).\u00a0 The regulator says the billionaire began buying the social network\u2019s stock in early 2022 and, by March 14 that year, held more than 5% of the outstanding shares. He was required [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":20345,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1162,1217,128,40,26],"class_list":["post-20346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-court-cases","tag-elon-musk","tag-sec","tag-twitter","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"61","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/20346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=20346"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/20346\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/20345"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=20346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=20346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=20346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}