The U.S. Securities and Exchange Commission (SEC) is suing billionaire Elon Musk for making late disclosures about increasing his stake in Twitter, today’s X Corp. The AP reported on the news late today. Musk eventually bought Twitter, which operates the eponymous network, and renamed the company and platform X.
Resignation
The future of the lawsuit is unclear, as the AP pointed out, as SEC chief Gary Gensler plans to step down on January 20, when Republican Donald Trump takes office as US president. Musk is a close confidant of Trump.
According to the SEC, Musk saved at least $150 million in stock purchases by failing to report within ten days that he had acquired more than five percent of Twitter on 14 March. He did not make the relevant announcement until 4 April, which was eleven days late. Shareholders who sold their shares to him during that time suffered losses, according to the Commission. The SEC therefore wants Musk to pay the appropriate amount and a fine.
Legal proceedings
Musk’s lawyer Alex Spiro denies that the billionaire did anything wrong. He told Bloomberg that Musk has been facing a campaign against him by the SEC for years.
Musk paid $44 billion for Network X, then still called Twitter, the year before last. The company has since undergone significant changes, including a major downsizing and renaming. Musk touted the network’s security after the takeover, but former employees say the network’s security has deteriorated, Reuters reports.
Source: Czech Press Office
