Elon Musk Faces SEC Lawsuit Over Delayed Twitter Stock Disclosure

Elon Musk Faces SEC Lawsuit Over Delayed Twitter Stock Disclosure

The Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, alleging he violated securities laws by failing to timely disclose his significant stake in Twitter. The SEC claims Musk's delayed disclosure, which occurred weeks after he began accumulating shares, cost investors over $150 million. The Case Against Musk The SEC alleges that Musk was obligated to file a Form 13D within 10 days of acquiring more than 5% of Twitter's outstanding shares. However, Musk reportedly began purchasing shares in late March 2022 but did not file the required disclosure until April 4th and 5th. The SEC argues that this delay allowed Musk to capitalize on the undisclosed stake. By purchasing shares while concealing his significant ownership, Musk allegedly avoided market pressure that could have driven up the stock price. The SEC's Claims: Market Manipulation: The SEC contends that Musk's delayed disclosure constituted market manipulation, as it artificially suppressed …