News Summary

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against billionaire Elon Musk, accusing him of failing to disclose his early purchase of Twitter stock in a timely manner, which allegedly allowed him to buy shares at artificially low prices. The SEC’s complaint, filed in federal court in Washington D.C., claims Musk’s delay in disclosing his acquisition of a 5% stake in Twitter enabled him to underpay by at least $150 million. This lawsuit follows a previous investigation by the SEC into Musk’s purchase of Twitter, which he eventually bought for $44 billion in 2022 and rebranded as ‘X’. Musk’s attorney has dismissed the lawsuit as an administrative issue, while the SEC argues that Musk’s actions harmed other shareholders by allowing him to acquire stock from the public at reduced prices.