The US Securities and Exchange Commission has filed a case against the billionaire. Elon MuskSaying that he failed to show his ownership. Twitter Stock up on time in early 2022 before buying a social media site.
As a result, the SEC alleges, Musk was able to underpay “at least $150 million” for the shares he bought when he should have disclosed he owned more than 5 percent of Twitter's shares. Musk bought Twitter in October 2022 and later renamed it X.
Musk began accumulating Twitter shares in early 2022 and owned more than 5 percent by March of that year. At that point, the complaint says, he was required by law to disclose his ownership, but he failed to do so until April 4, 11 days after the report.
Musk's lawyer, Alex Spiro, said in a statement that the lawsuit is “an admission by the SEC that they can't bring the original lawsuit” because Musk “has done nothing wrong.”
He called the case a “fraud”.
Get daily national news.
Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day.
“As the SEC backs down and leaves office — ending the SEC's multi-year campaign of harassment against Mr. Musk on a single count of alleged administrative failure to file a Section 13(d) filing against Mr. The same form happened on filing a tech complaint — an offense that, even if proven, is a nominal penalty,” Spiro added.
After Musk signed an agreement to acquire Twitter in April 2022, he tried to back out, leading the company to sue him to force the acquisition.
The SEC has said that beginning in April 2022, it has authorized an investigation into whether Musk's purchase of Twitter stock and any securities in connection with his statements and SEC filings about the company. Laws were broken.
Before filing suit, the SEC went to court in an attempt to compel Musk to testify as part of the investigation into his Twitter purchase.
The SEC's current head, Gary Gensler, plans to step down on Jan. 20 and it's unclear whether the new administration will continue the lawsuit.
© 2025 Canadian Press