Musk had bought Twitter shares even before buying it, SEC filed a case for not disclosing it
Elon Musk: The complaint states that Musk did not disclose it till April 4, which is a violation of the rules. Musk acquired Twitter in October 2022 and later changed its name to X.
Legendary billionaire Elon Musk bought social media company X, commonly known as Twitter, in 2022. But now Musk seems to be in trouble regarding that deal. The US Market Regulatory Commission Securities and Exchange Commission - SEC - has filed a lawsuit against Elon Musk.
The SEC alleges that Musk had bought shares of X even before buying it, but Musk did not inform the SEC about it. Due to a violation of rules, the SEC has started legal proceedings against Musk. According to media reports, Elon Musk started buying Twitter shares from the beginning of 2022 and by March 2022, Musk owned more than 5 percent of Twitter's shares. The complaint states that Musk did not disclose this until April 4, which is a violation of the rules. Musk acquired Twitter in October 2022 and later changed its name to X.
The SEC lawsuit was also not responded to by Musk and X yet. After agreeing to purchase Twitter in April 2022, Musk attempted to step back, because of which the company filed a case against him for putting pressure on acquiring it. The SEC said that it has probed since last April whether Musk had complied with securities laws related to the company and SEC filings amid the acquisition of Twitter. It is worth noting here that the current chairman of the SEC, Gary Gensler, was planning to resign from his post on January 20, the day Trump is sworn in. In such a case, it is not certain whether Musk's case will be pursued by the new administration or not.
