The US Securities and Exchange Commission (SEC) has filed a lawsuit against billionaire entrepreneur Elon Musk, alleging he committed securities fraud by acquiring Twitter shares at “artificially low prices.” The SEC claims Musk underpaid for Twitter shares by at least $150 million.
Musk purchased Twitter in 2022 for approximately $44 billion, later renaming it X. He failed to disclose his growing stake in the company until nearly 10 days past the required deadline. According to the SEC, this allowed him to acquire more Twitter shares at artificially low prices, ultimately underpaying shareholders by over $150 million.
The complaint also reveals that Musk spent approximately $500 million on additional Twitter share purchases between the disclosure period and his actual filing, further enabling him to buy from “unsuspecting public” at low prices. The SEC seeks a jury trial and is demanding Musk pay disgorgement of his unjust enrichment as well as a civil penalty.
This latest development marks the latest chapter in an almost three-year saga surrounding Musk’s dealings with Twitter and the SEC.
Source: https://www.cnbc.com/2025/01/14/sec-sues-musk-alleges-failure-to-properly-disclose-twitter-ownership.html