Elon Musk failed to disclose owning over 5% of Twitter stock promptly, enabling him to buy shares at lower prices, allegedly underpaying investors by $150 million.
According to the SEC, Musk's late filing allowed him to make significant share purchases at artificially low prices, resulting in over $150 million in underpayment.
Musk disclosed his stake on April 4, 2022, 11 days after the deadline, coinciding with a 27% rise in Twitter's stock price, raising investor concerns.
The SEC emphasizes the importance of timely disclosure to protect investors, stating Musk's actions led to substantial economic harm for those selling shares during that time.
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