The U.S. Securities and Exchange Commission (SEC) accused Elon Musk of costing Twitter investors over $150M by delaying disclosure of his stake in the company during his 2022 takeover bid. The lawsuit claims Musk's delay allowed him to purchase shares at artificially low prices, harming investors who sold during this period.
— Musk exceeded the 5% ownership threshold in Twitter stock but failed to disclose it within the required timeline, triggering a 27% stock price surge once revealed.
— The SEC demands penalties and recovery of unjust profits.
— Musk's lawyer, Alex Spiro, called the suit "harassment," describing it as a minor administrative infraction.
— Spiro criticized the SEC's proposed $200M penalty as excessive, comparing it to far lower penalties in similar cases.
⚫Background:
— Musk has a history of clashes with the SEC, including the 2018 Tesla "funding secured" tweet settlement.
— The case highlights Musk’s influence in markets and his controversial approach to regulatory compliance.
This legal battle marks another chapter in Musk's contentious relationship with regulators, with significant implications for shareholder protections and market transparency.
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