The Elon Musk-SEC story is gaining new momentum! On January 14, the regulator filed a lawsuit against the billionaire, accusing him of concealing information about his ownership of Twitter (now X) shares. The SEC claims that Musk violated a 10-day notice period by filing a report 11 days late. 📉
⚖️ What happened?
Musk began buying shares in early 2022 and owned more than 5% by March 14. According to the SEC, this allowed him to continue buying shares at a discount, which allegedly left Musk “underpaid” by $150 million. At the time of filing (April 4, 2022), Twitter shares had soared 27%! 💸
Musk, as always, did not stand aside and responded sharply:
"A completely collapsed organization. They waste their time on this kind of thing while the real crimes go unpunished." 🔥
His lawyer, Alex Spiro, said the lawsuit was merely an attempt to cover up the commission's failure to "prosecute a real case."
💡 Context:
Recall that in April 2022, Musk became Twitter's largest shareholder, and later offered to buy the company for $44 billion. The deal closed in October, and Musk immediately made major changes. And in October 2023, the SEC already tried to question him about this deal, but Musk again showed his inflexibility.
❓ What do you think is behind this lawsuit? A fight for justice or another conflict of interests? 🧐