After a more than two-year investigation, the Securities and Exchange Commission Elon Musk is on it Of the Twitter shares he collected before announcing his intention to acquire the company in 2022.
In a court filing, the SEC says Musk filed paperwork with the SEC disclosing his purchase of Twitter stock 11 days after the SEC’s deadline to do so. This, according to the regulator, allowed him to buy more Twitter shares at a time when other investors were unaware of his involvement in the company.
From the lawsuit:
During the period in which Musk was required to publicly disclose his beneficial ownership but failed to do so, he spent more than $500 million to purchase additional shares of Twitter common stock. Because Musk failed to disclose his beneficial ownership in a timely manner, he was able to make these purchases from the unsuspecting public at artificially low prices, which did not yet reflect material undisclosed information about Musk’s beneficial ownership of more than five percent. Of common stock and investments in Twitter are highly. In total, Musk paid Twitter investors less than $150 million for his purchases of Twitter common stock during this period. Investors who sold Twitter common stock during this period did so at artificially low prices and thus suffered significant economic damage.
The regulator has been investigating Musk for years, and has had a long feud with the owner of X. At some point, the SEC decided By trying to stall and use “manipulation” to delay its investigation into his investment in Twitter. Musk shared last month From a letter to SEC Chairman Gary Gensler, in which Musk’s lawyer accused the regulator of “six years of harassment” targeting Musk. The letter noted that Musk rejected a settlement offer from the SEC in connection with its investigation into Twitter
X did not immediately respond to a request for comment.
development…
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