WASHINGTON — The US Securities and Exchange Commission has filed a complaint against Elon Musk, alleging that he neglected to disclose that he had built up a stake in Twitter, allowing him to buy shares at “artificially low prices.” The Securities and Exchange Commission (SEC) lawsuit claims that the multibillionaire Tesla CEO saved $150 million (£123 million) in share purchases as a result.
According to SEC rules, investors with holdings more than 5% have 10 days to notify that they have crossed that level. Musk did so 21 days after the purchase, according to the document. In a social media post, Musk called the SEC a “totally broken organization.” He also accused the regulator of wasting its time when “there are so many actual crimes that go unpunished.” “Musk’s violation resulted in substantial economic harm to investors,” the SEC lawsuit stated.
In an email to BBC News, Musk’s lawyer, Alex Spiro, branded the case as a “sham” and “a campaign of harassment” against his client. The SEC reported that Twitter’s share price increased by more than 27% after Musk made his share purchase public on April 4, 2022. Musk bought Twitter for $44 billion in October 2022 and has since renamed the network X. The SEC filed the case in a federal court in Washington, DC, on Tuesday.
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