Official court filings or announcements from the SEC

SEC Sues Elon Musk Over Delayed Twitter Disclosure, Alleging $150 Million Underpayment

Jan 15, 2025, 03:15 AM

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk in federal court in Washington, D.C., alleging securities fraud related to his acquisition of Twitter shares in 2022. The SEC contends that Musk failed to timely disclose his purchase of more than 5% of Twitter's stock in March 2022, delaying the disclosure by 11 days. According to the SEC, this delay allowed Musk to buy shares at 'artificially low prices,' underpaying investors by at least $150 million. The agency alleges that Musk violated securities laws by amassing a large stock position without filing the proper notification. Musk's attorney has stated that he has done nothing wrong and called the case a 'sham.'