The Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, alleging securities fraud in his 2022 acquisition of Twitter, now known as X.
At a Glance
- SEC sues Elon Musk for alleged failure to disclose Twitter ownership
- Musk accused of buying Twitter shares at artificially low prices
- Lawsuit claims Musk was over 10 days late in reporting his stake
- Musk’s lawyer calls the SEC’s action a “sham”
- Trump’s upcoming second term adds political intrigue to the case
SEC’s Allegations Against Musk
The Securities and Exchange Commission has launched a legal battle against Elon Musk, accusing him of securities fraud related to his $44 billion acquisition of Twitter in 2022. The regulatory body alleges that Musk failed to properly disclose his stake in the social media platform, allowing him to purchase shares at artificially low prices.
Of course the establishment doesn’t want free speech online…
According to the SEC, Musk was over 10 days late in reporting his stake, resulting in an underpayment of at least $150 million for the shares he acquired. The lawsuit claims that by March 2022, Musk owned more than 5% of Twitter shares, which by law required disclosure. However, Musk delayed this disclosure until April 4, potentially violating securities regulations.
Musk’s Response and Legal Defense
Elon Musk and his legal team have strongly denied the SEC’s allegations. Musk’s lawyer, Alex Spiro, dismissed the lawsuit as a “sham” and an admission of a weak case. “This is clearly a vindictive action by the SEC and an admission by the SEC that they cannot bring an actual case,” Spiro said.
“This is clearly a vindictive action by the SEC and an admission by the SEC that they cannot bring an actual case,” Spiro said.
Musk himself took to X, formerly known as Twitter, to criticize the SEC, calling it a “totally broken organization.” The tech mogul’s history with the regulatory body includes a 2018 charge for misleading statements about taking Tesla private, which resulted in a settlement.
It’s clear what this is: an assault on freedom of speech and the man who protected it online.
The lawsuit comes at a politically charged time, with President-elect Donald Trump set to begin his second term. Trump’s administration is expected to focus on reducing regulations, which could potentially impact the outcome of this case. Reports suggest that Trump plans to replace SEC Chairman Gary Gensler with Paul Atkins, signaling a possible shift in regulatory approach.
Adding to the intrigue, Musk has a huge amount of influence in the upcoming Trump administration.
Let’s hope Trump steps in and puts an end to this nonsense.