SEC Sues Elon Musk Over Alleged Twitter Stock Misleading
The SEC filed a lawsuit against Elon Musk, alleging he violated federal securities laws by delaying disclosure of his Twitter stock purchases in 2022. This delayed disclosure, the suit claims, allowed Musk to acquire shares at artificially low prices before his takeover, costing other investors at least $150 million. The SEC seeks disgorgement of Musk’s unjust enrichment and civil penalties. Musk, who has a history of clashes with the SEC, vehemently denies wrongdoing, calling the suit a politically motivated attack. The timing of the lawsuit, preceding the SEC chairman’s resignation and a potential change in administration, adds another layer of complexity.
John Q. Hosedrinker