US markets watchdog sues Elon Musk over Twitter stake disclosure

Published On Jan 14, 2025, 7:26 PM

The U.S. Securities and Exchange Commission (SEC) has sued Elon Musk, alleging he failed to promptly disclose his ownership of a significant Twitter stake, which allowed him to save $150 million by purchasing shares at artificially low prices. According to federal regulations, investors must report exceeding 5% ownership within 10 days but Musk reportedly delayed his disclosure by 11 days. Following the public announcement of his stake, Twitter's share price rose significantly. Musk's lawyers have not commented yet on the lawsuit.