President Biden’s Securities and Exchange Commission (SEC) announced Tuesday that it is taking action against Elon Musk for allegedly underpaying for Twitter stock. Musk’s critics have gloated that his purchase was a gross overpay.
The SEC’s enforcement action accuses Musk of violating the beneficial ownership reporting requirements when he bought over $500 million worth of Twitter stock in 2022.
“He was able to make these purchases of Twitter common stock at artificially low prices from the unsuspecting public, who had not yet priced in the undisclosed material information of Musk’s beneficial ownership of more than five percent of Twitter common stock and investment purpose,” the SEC alleges.
The SEC accuses him of underpaying by at least $150 million for the purchase.
When Musk ultimately bought the remaining 95 percent of Twitter stock for $44 billion in October…
