The SEC alleges that Musk failed to disclose his ownership of more than 5% of Twitter stock in a timely manner, resulting in at least a $150 million underpayment for shares purchased post-filing deadline.
Musk started acquiring Twitter shares in early 2022, surpassing the 5% ownership threshold by March, which legally obligated him to disclose his stake by March 24, but he didn’t do so until April 4.
After acquiring Twitter, Musk attempted to back out of the deal, which led to a lawsuit from Twitter to enforce the acquisition, raising questions about his earlier disclosures.
The SEC has authorized an investigation into potential securities law violations, examining Musk's purchases and his related statements, with a lawsuit now filed.
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