Elon Musk faces US SEC lawsuit over late disclosure of Twitter stake
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against billionaire entrepreneur Elon Musk, accusing him of failing to disclose his acquisition of a significant stake in Twitter within the required timeline.
The case stems from Musk’s 2022 takeover of the social media platform, now rebranded as X.
According to the SEC, Musk began accumulating Twitter shares in early 2022 and surpassed the 5% ownership threshold on March 14, 2022.
READ ALSO: Elon Musk changes Twitter’s bird logo to X
Federal regulations require investors to disclose such holdings within 10 days, but Musk allegedly waited until April 4, 2022—11 days past the deadline—to make the information public.
The SEC argues that Musk’s delayed disclosure gave him an unfair advantage, allowing him to save at least $150 million on subsequent stock purchases before the market reacted to his significant stake.
Musk’s attorney, Alex Spiro, has dismissed the allegations, asserting that his client “has done nothing wrong.” Spiro further accused the SEC of conducting a “multi-year campaign of harassment” against Musk, referencing previous clashes between the entrepreneur and the regulatory body.
The timing of the lawsuit raises questions about its potential political implications, as Musk has a well-documented relationship with U.S. President-elect Donald Trump, who will assume office on January 20. Observers suggest the case could test the SEC’s regulatory independence under the new administration.
As legal proceedings unfold, the lawsuit adds another layer of complexity to Musk’s controversial acquisition of Twitter, which has been a focal point of public and regulatory scrutiny.
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