The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Elon Musk on Tuesday, accusing him of failing to timely disclose his acquisition of more than 5% of Twitter shares before his 2022 takeover.
The SEC alleges that Musk crossed the 5% ownership threshold on March 14, 2022, but didn’t publicly disclose this until April 4, violating SEC regulations. This late disclosure, according to the SEC, artificially inflated Twitter’s stock price, allowing Musk to purchase shares at a lower cost.