The SEC has filed a lawsuit against billionaire Elon Musk, accusing him of violating securities law by failing to disclose his active stake in Twitter, which allowed him to purchase shares at “artificially low prices.”
CNBC reports that in a civil complaint filed on Tuesday in the U.S. District Court in Washington, D.C., the SEC alleges that Elon Musk committed securities fraud in 2022 by not disclosing his ownership of more than five percent of Twitter shares within the required 10 calendar days of reaching that threshold. This lack of transparency, according to the SEC, enabled Musk to underpay for Twitter shares by at least $150 million.
Musk, who is also the CEO of Tesla and SpaceX, acquired Twitter for $44 billion in late 2022 and subsequently changed the company’s name to X the following year. The SEC’s complaint states that Musk was more than 10 days late in…
