Sightful Invest
  • Business
  • Investing
  • Politics
  • Stock
Top Posts
Trump considers tax hike on Americans making $2.5...
GOP senators: Congress should vote on Trump’s potential...
White House highlights over $2B in savings from...
GOP talk on millionaire tax hike ‘makes no...
Trump’s first vice president urges his old boss...
Department of Justice opens criminal investigation into NY...
Trump claims ‘I don’t know her’ and ‘listened...
Rubio just got an additional job in Trump’s...
OpenAI’s Sam Altman thanks Sen John Fetterman for...
Former Supreme Court Justice David Souter dead at...
  • Business
  • Investing
  • Politics
  • Stock

Sightful Invest

Investing

SEC Sues Elon Musk for Delay in Twitter Stock Disclosure

by admin January 16, 2025
January 16, 2025
SEC Sues Elon Musk for Delay in Twitter Stock Disclosure

The US Securities and Exchange Commission (SEC) has initiated legal action against Elon Musk over allegations that he failed to disclose his significant ownership stake in Twitter within the required timeframe.

According to the SEC complaint, Musk began acquiring shares of Twitter, now called X, in early 2022. The Tesla (NASDAQ:TSLA) leader reportedly surpassed the 5 percent ownership threshold on March 14 of that year.

Under US securities law, any investor who accumulates more than 5 percent of a company’s stock must publicly disclose their stake within 10 days. Musk reportedly delayed this announcement until April 4, 2022, 11 days past the deadline, during which time he increased his stake in the social media platform to 9 percent.

The SEC states that Twitter’s share price rose by 27 percent following Musk’s eventual disclosure, a sharp uptick that underscored the market impact of his involvement. The agency contends that Musk’s delayed announcement allowed him to purchase additional shares at a lower price, effectively saving him at least US$150 million.

The lawsuit seeks to recover these alleged gains along with an additional financial penalty.

Details of the SEC’s findings

The SEC claims Musk privately informed a Twitter board member on March 27, 2022, that he owned at least 7 percent of the company. He also reportedly expressed interest in joining the board and taking the company private.

The lawsuit alleges that these discussions further underscore the significance of his delayed disclosure, as it deprived the public and existing shareholders of critical information that could have influenced trading decisions.

The SEC also says that it has obtained private text messages and other communications between Musk and Twitter’s board, suggesting a detailed investigation into the timeline and nature of his stock purchases.

These messages are expected to play a pivotal role in the case as the agency attempts to establish intent and the extent of any regulatory violations.

Musk’s response

Musk’s legal team has dismissed the allegations, with his attorney, Alex Spiro, accusing the SEC of engaging in a ‘multi-year campaign of harassment’ against the billionaire entrepreneur.

Spiro maintains that Musk complied with disclosure rules and has argued that the agency’s claims lack merit.

Musk has frequently clashed with the SEC in the past, often criticizing the regulator’s actions and oversight. This lawsuit adds another layer to the contentious relationship between Musk and the agency.

The lawsuit arrives at a critical juncture as Musk prepares to assume a high-profile role in the Trump administration’s newly created Department of Government Efficiency, raising questions about potential conflicts of interest.

The SEC’s leadership is also set to change, with current Chair Gary Gensler planning to step down ahead of the administration transition.

Musk’s acquisition of Twitter, which was finalized in October 2022 for US$44 billion, transformed the platform into X. The deal and its fallout, including significant changes to operations and policies, have kept X in the spotlight.

Shares of Musk’s electric vehicle company Tesla were unscathed by the new SEC lawsuit. They were up 7.48 percent year-to-date gain as of midday on Wednesday (January 15).

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

previous post
Zinc Price Forecast: Top Trends for Zinc in 2025
next post
Top 5 Small-cap Medical Device Stocks (Updated January 2025)

You may also like

Anteros Completes 3D Modelling and Identifies New Critical...

March 27, 2025

Heritage Mining

January 13, 2025

Silver Crown Royalties Announces Updates to Non-Brokered Private...

February 18, 2025

Jindalee Lithium Limited (ASX: JLL) – Reinstatement to...

November 19, 2024

Group Eleven Intersects 8.7m of 23.9% Zn+Pb and...

November 14, 2024

Saga Metals

October 3, 2024

Perpetua Gets US Forest Service Approval for Stibnite...

January 8, 2025

10 Largest Producers of Gold by Country

February 13, 2025

Can You Invest in Neuralink?

January 23, 2025

Iron Bear Completes Pilot Pellet Production Run and...

October 10, 2024

Recent Posts

  • Trump considers tax hike on Americans making $2.5 million or more per year
  • GOP senators: Congress should vote on Trump’s potential Iran nuclear deal
  • White House highlights over $2B in savings from DEI cuts during Trump administration’s first 100 days
  • GOP talk on millionaire tax hike ‘makes no sense,’ Trump White House alum says
  • Trump’s first vice president urges his old boss against raising taxes on wealthy Americans

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (712)
    • Investing (2,058)
    • Politics (2,553)
    • Stock (4)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sightfulinvest.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 Sightful Invest. All Rights Reserved.