Xorte logo

News Markets Groups

USA | Europe | Asia | World| Stocks | Commodities



Add a new RSS channel

 
 


Keywords

2025-01-15 01:26:27| Engadget

After a more than two-year investigation, the Securities and Exchange Commission has sued Elon Musk over his delayed disclosure of the Twitter stock he amassed before announcing his intention to acquire the company in 2022. In a court filing, the SEC says that Musk filed paperwork with the SEC disclosing his purchase of Twitter shares 11 days after an SEC-mandated deadline to do so. (Federal law, as the SEC notes in its statement, requires investors to publicly report when they have acquired a more than 5 percent stake in a company.) This delay, according to the regulator, allowed Musk to buy up even more Twitter stock at a time when other investors were unaware of his involvement with the company. From the lawsuit: During the period that Musk was required to publicly disclose his beneficial ownership but had failed to do so, he spent more than $500 million purchasing additional shares of Twitter common stock. Because Musk failed to timely disclose his beneficial ownership, he was able to make these purchases from the unsuspecting public at artificially low prices, which did not yet reflect the undisclosed material information of Musks beneficial ownership of more than five percent of Twitter common stock and investment purpose. In total, Musk underpaid Twitter investors by more 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 substantial economic harm. The regulator has been investigating Musk for years, and has long been at odds with the owner of X. At one point, the SEC accused Musk of attempting to stall and use gamesmanship to delay its investigation into his investment in Twitter. Last month, Musk shared a copy of a letter addressed to SEC Chair Gary Gensler in which Musks lawyer, Alex Spiro, accused the regulator of six years of harassment targeting Musk. The letter indicated that Musk refused a settlement offer from the SEC related to its Twitter investigation. Musk also faced a class action lawsuit from other Twitter investors and an FTC probe related to the delayed disclosure. However, as The New York Times notes, its unclear if the SECs latest action will amount to much, as Gensler is expected to step down following the inauguration of President Donald Trump. X didnt immediately respond to a request for comment. In a statement to The Times, Spiro called the SECs action a a single-count ticky-tack complaint," calling it an admission by the S.E.C. that they cannot bring an actual case."This article originally appeared on Engadget at https://www.engadget.com/big-tech/sec-lawsuit-claims-musk-gained-over-150-million-by-delaying-twitter-stake-disclosure-002627091.html?src=rss


Category: Marketing and Advertising

 

Latest from this category

02.04National Security Council adds Gmail to its list of bad decisions
01.04Arkansas social media age verification law blocked by federal Judge
01.04Lazarus review: Wildly stylish, but its no Cowboy Bebop
01.04TikTok's ban deadline is coming. What happens next?
01.04IKEA offers free retail space to Valencia businesses hit by devastating floods
01.04Apple's Find My has finally launched in South Korea
01.04Amazons new cinema plan is perfect for the 80s
01.04Pick up the Beats Pill speaker while it's on sale for a record-low price
Marketing and Advertising »

All news

02.04Wednesday Watch
02.04Investors tread warily as tariff clock counts down
02.04Why its crucial to rebalance MF portfolios
02.04MXCCL settles case of securities law violation with Sebi
02.04Companies rush to file for IPOs despite weak market
02.04Escape to safety takes gold to a record Rs 90,000
02.04D-Street hits a 5-year nadir in first-day-of-the-fiscal performance
02.04Lawsuit claims Chicago approval for cannabis store in Streeterville was illegal
More »
Privacy policy . Copyright . Contact form .