The US Securities and Exchange Commission has sued billionaire Elon Musk, saying he failed to disclose his ownership of Twitter stock in early 2022, before buying the social network.
Because of this, the SEC says, Musk was able to underpay by “at least $150 million” for the shares he bought after he disclosed his ownership of more than 5 percent of Twitter. Musk bought Twitter in October 2022 and later renamed it X.
Musk began accumulating shares of Twitter in early 2022, and in March of that year, he had more than 5 percent. Meanwhile, the complaint says, he was required by law to reveal his identity, but failed to do so until April 4, 11 days after the report was issued.
Musk’s attorney, Alex Spiro, said in a statement that the lawsuit is “an admission by the SEC that they can’t bring a real case” since Musk “has done nothing wrong.”
He called the case a “trick.”
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“As the SEC backs down and steps down – the SEC’s years-long campaign to harass Mr. one form – a crime that, even if proven, carries a minimum penalty,” Spiro added.
After Musk signed a deal to acquire Twitter in April 2022, he tried to back out, leading the company to sue him to force him to continue with the acquisition.
The SEC said that starting in April 2022, it has authorized an investigation into whether any securities laws were violated in connection with Musk’s purchase of Twitter stock and his statements and SEC filings related to the company.
Before it filed suit, the SEC went to court in an attempt to compel Musk to testify as part of an investigation into his purchase of Twitter.
The SEC’s current chairman, Gary Gensler, plans to step down on January 20 and it is unclear whether the new administration will continue the case.
© 2025 The Canadian Press
