Elon Musk Sued by SEC Over Alleged Failure To Disclose Twitter Stock On Time

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The Securities and Exchange Commission (SEC) filed a lawsuit against tech billionaire Elon Musk, accusing him of failing to disclose his ownership of Twitter stock in a timely manner in early 2022.

According to the SEC, the omission allowed Musk to save “by at least $150 million” on shares he purchased after surpassing the 5 percent ownership threshold.

Musk, now a close ally of President-elect Donald Trump and poised to take up a role in the new administration, finalized his purchase of Twitter in October 2022, later rebranding it as X. The SEC’s complaint claims Musk began buying Twitter shares early that year and crossed the 5 percent mark by March. At that point, federal securities law required Musk to disclose his stake within ten days publicly, but he delayed until April 4, missing the deadline by 11 days.

This alleged violation prompted the SEC to launch an investigation in April 2022, examining whether Musk had breached securities laws in connection with his Twitter stock purchases and related filings.

“The SEC authorized a probe to determine if there were any infractions tied to Musk’s acquisition of shares and his statements,” the agency noted.

The legal saga adds another chapter to Musk’s tumultuous history with Twitter. After signing a deal to acquire the platform in April 2022, he attempted to back out, leading the company to sue him to enforce the agreement.

The SEC’s efforts to investigate Musk’s conduct have faced resistance, including a court battle to compel his testimony. Meanwhile, SEC Chair Gary Gensler’s upcoming resignation on January 20 raises questions about whether the new administration will pursue the case.