Newscenter Media News American billionaire businessman Elon Musk has been hit with a lawsuit filed by the Securities and Exchange Commission (SEC) for failing to announce his acquisition of X (formerly known as Twitter) on time.
The SEC in a suit filed before a federal court in Washington DC on Tuesday said that Elon Musk violated federal securities laws, for failing to disclose his 5% ownership of Twitter in a timely manner.
According to the suit, Elon Musk chose to disclose his acquisition of Twitter 11 days later in order to build up a larger position on the board of the social media platform at a discounted price.
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The suit further argued that on the day Musk disclosed his acquisition to SEC, Twitter’s stock price increased 27% over the previous day’s closing price thus allowing Musk to underpay for his stake in Twitter by more than $150 million.
However, Musk’s lawyer Alex Spiro in a statement to Bloomberg described the suit as an “admission” that the SEC cannot bring an “actual case.”
“As the SEC retreats and leaves office, the SEC’s multi-year campaign of harassment against Mr. Musk culminated in the filing of a single-count ticky tak complaint against Mr. Musk,” said Spiro to Bloomberg.
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