US Market Watchdog sues Elon Musk for Buying Twitter

The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk for his actions related to the acquisition of Twitter.

The U.S. Exchange Commission (SEC) has filed a lawsuit against Elon Musk over the purchase of Micro blogging, Twitter now X.

The regular alleged that his acquisition of Twitter shares in 2022 was executed in a way that violated regulations.

“Defendant Elon Musk failed to timely file with the SEC a beneficial ownership report disclosing his acquisition of more than five per cent of the outstanding shares of Twitter’s common stock in March 2022, in violation of the federal securities laws,” the agency said in a court filing.

According to the SEC, the omission enabled Musk, a close ally of President-elect Donald Trump, to continue purchasing shares at “artificially low prices.

Which implies that Musk underpaid the price at least $150 million for shares he purchased after his beneficial ownership report was due.”

Musk’s role on the social network has been marked by numerous controversies and led to various legal actions on the part of investors, former employees and companies that had contracts with Twitter, now called X.

Shareholders, for example, have filed a lawsuit against Musk, accusing him of disclosing his five per cent stake in Twitter too late, after the deadline set by the SEC.

AFP