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The SEC filed suit against Elon Musk on Tuesday, alleging the billionaire committed securities fraud in 2022 by failing to disclose his holdings on Twitter and buying shares at “artificially low prices.”
Musk, who is also the CEO of Tesla and SpaceX, bought Twitter for $44 billion, later changing the name of the social network to X. Before the acquisition, he built a position in the company of more than 5%, which would have required disclosure of his stake to the public.
According to the SEC’s complaint, Musk failed to follow disclosure rules, “allowing him to pay less than at least $150 million for the stock he bought after his financial beneficial ownership report was required to be filed.”
The SEC was exploring did Musk or anyone else working with him commit securities fraud in 2022. Tesla The CEO sold shares in his car company and increased his stake in Twitter ahead of a leveraged buyout. Musk he said in an announcement on X last month that the SEC had issued a “settlement demand,” pressuring him to agree to a deal including a fine within 48 hours or “face charges on multiple counts” related to the stock purchase.
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