S.E.C. Files Lawsuit Against Elon Musk for Alleged Securities Violations Related to Twitter
Regulators claim Musk did not disclose his Twitter stock acquisitions, igniting a debate about enforcement and political influence.
The U.S. Securities and Exchange Commission has taken legal action against Elon Musk, alleging he violated securities regulations during his $44 billion acquisition of Twitter, now known as X.
The S.E.C. alleges that Musk delayed revealing his stake in Twitter in 2022, waiting 11 days after surpassing the 5% ownership mark. This purportedly allowed him to buy shares at a lower price, saving at least $150 million. Musk's attorney, Alex Spiro, dismissed the lawsuit as a 'sham' and accused the S.E.C. of engaging in a 'multiyear campaign of harassment.'
This marks the third legal confrontation between Musk and the agency, with previous cases related to his Tesla social media activity.
Filed as the Biden administration concludes, the lawsuit raises questions about its prospects under the incoming Trump administration, given Musk's close relationship with Trump.
While some legal disputes might lack political motivation, this one seems to be politically driven.
The S.E.C. alleges that Musk delayed revealing his stake in Twitter in 2022, waiting 11 days after surpassing the 5% ownership mark. This purportedly allowed him to buy shares at a lower price, saving at least $150 million. Musk's attorney, Alex Spiro, dismissed the lawsuit as a 'sham' and accused the S.E.C. of engaging in a 'multiyear campaign of harassment.'
This marks the third legal confrontation between Musk and the agency, with previous cases related to his Tesla social media activity.
Filed as the Biden administration concludes, the lawsuit raises questions about its prospects under the incoming Trump administration, given Musk's close relationship with Trump.
While some legal disputes might lack political motivation, this one seems to be politically driven.
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