Elon Musk, a name synonymous with innovation and controversy, recently found himself in hot water with the U.S. Securities and Exchange Commission (SEC). The SEC has filed a lawsuit against the billionaire, accusing him of failing to disclose his ownership of Twitter stock in a timely manner in early 2022, before buying the social media platform.
Here are some key points regarding the lawsuit and the events leading up to it:
- Musk allegedly underpaid by at least $150 million for shares he purchased after failing to disclose his ownership of more than 5% of Twitter’s shares.
- Despite accumulating Twitter shares in early 2022 and surpassing the 5% ownership threshold by March of that year, Musk delayed disclosing this information until April 4, missing the regulatory deadline by 11 days.
- Musk’s lawyer, Alex Spiro, vehemently defended his client, labeling the lawsuit as a “sham” and claiming that Musk had done nothing wrong.
- Following Musk’s attempt to acquire Twitter in April 2022 and subsequent efforts to back out of the deal, the company took legal action to compel him to honor the agreement.
In response to Musk’s actions, the SEC launched an investigation into potential violations of securities laws related to his Twitter stock purchases and associated disclosures. These developments occurred against the backdrop of SEC Chair Gary Gensler’s upcoming resignation on January 20, raising questions about the future of the lawsuit under the new administration.
As the legal battle unfolds and Musk’s fate hangs in the balance, the public awaits the outcome of this high-profile case with bated breath.
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