News Summary

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing him of failing to timely disclose his acquisition of Twitter stock in early 2022. The SEC alleges that Musk did not report his ownership of more than 5% of Twitter’s common shares within the required 10-day period, potentially allowing him to purchase additional shares at artificially low prices and underpay by at least $150 million. The lawsuit was filed just days before the expected change in the U.S. administration, which could bring a more favorable regulatory environment for Musk. The investigation into Musk’s stock purchases began in April 2022, with the SEC attempting to compel Musk’s testimony as part of the investigation. Musk’s lawyer has described the lawsuit as a “ticky-tack complaint” and part of a broader campaign of harassment by the SEC.