With the clock running out on the Biden administration, the US Securities and Exchange Commission has sued Elon Musk in federal court. The statute at hand is relatively straightforward. The timing of the complaint is more complicated.
The SEC’s complaint centers on Musk’s acquisition of Twitter stock in early 2022. According to the complaint, Musk failed to notify the agency that he had acquired more than 5 percent of common shares in the company within 10 calendar days. If true, that delay would violate federal security laws. “As a result, Musk was able to continue purchasing shares at artificially low prices,” the SEC alleges, “allowing him to underpay by at least $150 million for shares he purchased after his beneficial ownership report was due.” The SEC has asked for a jury trial.
This should all be pretty simple. “It looks like a straightforward case about a clear…
