Twitter’s acquisition by Elon Musk has resulted in a federal lawsuit by the Securities and Exchange Commission Alleged they broke securities laws by making late disclosures and saved $150 million in the process.
before musk Agreed To buy Twitter for $44 billion, before it tried to back out of that deal, before it was forced to, and before it changed its name to X getting a substantial share at the company but did not disclose that fact until weeks later.
the only problem, As the SEC reported thenThat is, by the time they disclosed that stake, it was outside the agency’s required 10-day period. They claim that they should have filed their paperwork by March 24, 2022, not when they actually did, on 4th April (and then again on 5th AprilHe says he bought more than $500 million worth of company shares during that period.
However, there are only a few days left until the Trump administration takes office and appoints the new head of the SEC (along with Elon Musk) An office was reportedly vandalized at the White House complex), it is unclear how far the lawsuit will go.
The SEC claims Musk caused investors to lose at least $150 million due to the late disclosures and that he harmed any investors who sold stock between March 25, 2022, and April 1, 2022. His lawsuit is seeking the money Elon earned as a result of the holdout. upon disclosure, as well as civil penalties and other penalties.
