The SEC alleges Elon Musk failed to disclose that he crossed the 5% ownership threshold for Twitter within the required 10-day period, revealing the position 21 days after his purchase on 4 April instead of by 14 March 2022. The regulator claims the late disclosure allowed Musk to buy shares at artificially low prices, saving about $150 million and causing substantial economic harm to investors. Musk provided two depositions during an SEC probe. Musk's lawyers argue the late filing was a single, corrected error with no intent, no ongoing violation, and no investor harm, and they criticize the SEC's pursuit.
"The SEC does not allege that Mr. Musk caused any investor harm. Rather, the SEC alleges that Mr. Musk late-filed a single beneficial ownership form three years ago, and fully corrected any alleged error immediately upon its discovery," they said in their Thursday filing. "There is no ongoing violation. There is no intent. There is no harm."
"a waste of this Court's time and taxpayer resources"
"Musk's violation resulted in substantial economic harm to investors," it claimed.
"totally broken organisation"
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