January 14, 2025 The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk over his Twitter acquisition in 2022. The SEC claims that Musk failed to promptly disclose when his stake in Twitter exceeded the 5% threshold, which allowed him to buy additional shares at a lower price. Following an extensive investigation, the SEC alleges that Musk’s delay in reporting this led to his purchase of shares at a discounted rate, ultimately saving him more than $150 million. Musk’s delayed filing, which came 11 days late on April 4, 2022, caused Twitter’s stock price to rise by 27% once the news was made public. The SEC argues that this delay financially harmed the shareholders who sold their stock to Musk during that time, and is demanding that he return the amount saved, along with a penalty. It remains uncertain how the lawsuit will progress, especially with the upcoming leadership change at the SEC following the inauguration of President Donald Trump’s successor, which could potentially impact the case’s outcome.
