Financial regulator alleges Musk later acquired shares of company at ‘artificially low prices’, stiffing shareholders

Summary

The SEC has sued Elon Musk, alleging he failed to disclose a timely 5% Twitter stake in 2022, allowing him to buy additional shares at “artificially low prices,” underpaying by $150M.

Musk disclosed his stake 11 days late, after purchasing over $500M in shares, leading Twitter’s stock to surge 27%.

Musk’s lawyer called the case baseless, accusing the SEC of harassment.

This follows prior SEC investigations into Musk for alleged securities fraud and insider trading related to Tesla stock sales.

Musk denies any wrongdoing.

  • keinBloudsinn@lemmings.world
    4·
    8 hours ago

    Ha! How is failing to follow the rules of the market “baseless”?! This is insider trading. He should have filed a disclosure immediately after passing the 5% threshold