The United States Securities and Exchange Commission (SEC) has filed a lawsuit against tech mogul Elon Musk, claiming that Musk failed to disclose his stake in social media giant Twitter in a timely manner in 2022. Musk, the CEO of Tesla and SpaceX, purchased Twitter in October 2022 and later rebranded the platform as X.
Earlier that year, Musk began purchasing Twitter shares. The complaint alleges that Musk owned more than 5% of the company by March 2022.
The SEC says the law required Musk to disclose his Twitter holdings. They allege that he did not disclose this information until April 4, 2022 –– 11 days after the beneficial ownership report due date had passed.
“Musk saved at least $150 million at the expense of Twitter shareholders by failing to timely file the beneficial ownership report,” according to the SEC.
In a post on X, Musk responded to the lawsuit. He called the SEC a “totally broken organization” and defended himself. He said, “They spend their time on s*** like this when there are so many actual crimes that go unpunished.”
Musk’s lawyer, Alex Spiro, called the lawsuit a “sham.” Spiro said in a statement to the Associated Press that the suit “is an admission by the SEC that they cannot bring an actual case” since Musk has “done nothing wrong.”
Meanwhile, current SEC Chair Gary Gensler, who has been serving since 2021, plans to step down on Jan. 20 when President-elect Donald Trump takes office.
It’s unlikely the new administration will pursue the lawsuit. Musk has been appointed to lead Trump’s “Department of Government Efficiency” during his second term in office.
