The SEC wants Musk to release profits he made during the process to raise stakes and acquire Twitter to which he was not entitled to.
Washington: The US Securities and Exchange Commission (SEC) has filed a case against billionaire entrepreneur Elon Musk for failing to disclose the purchase of more than 5% of Twitter’s (now X) common stock in March 2022.
The case filed by the SEC in Washington DC federal court alleges that the delay in disclosure allowed Musk to continue the purchase of shares of Twitter at an artificially low price which made him underpay by at least $150 million.
As per an SEC rule, investors like Musk need to disclose their ownership in a company if the threshold crosses 5% within 10 calendar days. But the SEC’s complaint contends that Musk waited for 11 days before filing the required disclosure at the SEC.
