{"id":21083,"date":"2025-01-15T07:43:34","date_gmt":"2025-01-15T07:43:34","guid":{"rendered":"https:\/\/news.godj.com\/news\/us-markets-watchdog-sues-elon-musk-over-twitter-stake-disclosure\/"},"modified":"2025-01-15T07:43:34","modified_gmt":"2025-01-15T07:43:34","slug":"us-markets-watchdog-sues-elon-musk-over-twitter-stake-disclosure","status":"publish","type":"post","link":"https:\/\/news.godj.com\/news\/us-markets-watchdog-sues-elon-musk-over-twitter-stake-disclosure\/","title":{"rendered":"US markets watchdog sues Elon Musk over Twitter stake disclosure"},"content":{"rendered":"


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The US markets watchdog has filed a lawsuit against Elon Musk alleging he failed to disclose that he had amassed a stake in Twitter, allowing him to buy shares at “artificially low prices.”<\/p>\n

The Securities and Exchange Commission (SEC) lawsuit alleges that the multi-billionaire Tesla boss saved $150m (\u00a3123m) in share purchases as a result.<\/p>\n

According to SEC rules, investors whose holdings surpass 5% have 10 days to report that they have crossed that threshold. Musk did so 21 days after the purchase, the filing says.<\/p>\n

In a social media post<\/a>, Musk called the SEC a “totally broken organisation.”<\/p>\n<\/div>\n

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He also accused the regulator of wasting its time when “there are so many actual crimes that go unpunished.”<\/p>\n

“Musk’s violation resulted in substantial economic harm to investors,” the SEC complaint said<\/a>. <\/p>\n

In a statement emailed to BBC News, Musk’s lawyer, Alex Spiro, described the lawsuit as a “sham” and “a campaign of harassment” against his client.<\/p>\n

Twitter’s share price rose by more than 27% after Musk made his share purchase public on 4 April 2022, the SEC said.<\/p>\n

Musk ended up buying Twitter for $44bn in October 2022 and has since changed the platform’s name to X.<\/p>\n

The complaint was submitted by the SEC to a federal court in Washington DC <\/b>on Tuesday.<\/p>\n

The lawsuit also asked the court to order Musk to give up “unjust” profits and pay a fine.<\/p>\n

The head of the SEC, Gary Gensler, announced in November that he will resign from his role when Donald Trump returns to the White House on 20 January.<\/p>\n

That was after Trump said he planned to sack Mr Gensler on “day one” of his new administration.<\/p>\n

Under Mr Gensler’s leadership, the SEC clashed with Musk, who is a close ally of the president-elect.<\/p>\n

But Musk had run-ins with the SEC long before Mr Gensler took office.<\/p>\n

In 2018, the regulator charged Musk with defrauding investors by claiming he had “funding secured” to take Tesla, the electric car company he leads, private.<\/p>\n

He later settled the charges, stepping down as chairman of the firm’s board and agreeing to accept what was dubbed a Twitter sitter – limits on what he could write on social media about the company.<\/p>\n<\/div>\n


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The US markets watchdog has filed a lawsuit against Elon Musk alleging he failed to disclose that he had amassed a stake in Twitter, allowing him to buy shares at “artificially low prices.” The Securities and Exchange Commission (SEC) lawsuit alleges that the multi-billionaire Tesla boss saved $150m (\u00a3123m) in share purchases as a result. […]<\/p>\n","protected":false},"author":1,"featured_media":21084,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[62],"tags":[8001,969,3807,91,1587,544,963,2618],"class_list":["post-21083","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","tag-disclosure","tag-elon","tag-markets","tag-musk","tag-stake","tag-sues","tag-twitter","tag-watchdog"],"_links":{"self":[{"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/posts\/21083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/comments?post=21083"}],"version-history":[{"count":1,"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/posts\/21083\/revisions"}],"predecessor-version":[{"id":21085,"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/posts\/21083\/revisions\/21085"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/media\/21084"}],"wp:attachment":[{"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/media?parent=21083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/categories?post=21083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.godj.com\/news\/wp-json\/wp\/v2\/tags?post=21083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}