SEC Sues Elon Musk Over Twitter Shares

The U.S. Securities and Exchange Commission (SEC) has accused Elon Musk of violating the law by failing to disclose his purchase of a large stake in Twitter on time.

The case: In March 2022, Musk exceeded the 5% ownership threshold, but he delayed reporting his 9.2% stake by 11 days past the legal deadline. During this time, he bought more shares at lower prices. When he finally disclosed his stake on April 4, 2022, Twitter's stock price surged by 27%, potentially saving Musk up to $200 million.

The law requires investors to report such acquisitions within 10 days to ensure market transparency.

This lawsuit marks another clash between Musk and the SEC. What do you think—fair regulation or just more hype?