US SEC sues Elon Musk over late disclosure of Twitter stake
Published On Jan 14, 2025, 7:46 PM
The U.S. Securities and Exchange Commission (SEC) has sued Elon Musk for failing to promptly disclose his purchase of more than 5% of Twitter's shares in early 2022, violating federal securities laws. Musk bought a sizable share without revealing his stakes to the public for 11 days, during which he acquired a 9.2% stake in Twitter, resulting in significant gains for himself when the stock price rose after the public disclosure. The SEC is seeking financial penalties from Musk. Musk, who claims this is a baseless attack, has faced previous legal issues with the SEC regarding his statements about Tesla's funding.
Stock Forecasts
TSLA
Negative
This lawsuit suggests potential volatility for Tesla, as any adverse developments could affect investor perception and share price. However, given Musk's history and the likelihood that he will contest this lawsuit vigorously, the immediate impact may be limited. Investors may need to monitor the situation closely for further developments.
Related News
Tesla briefly pops on encouraging EV data, prospects of Elon Musk purchasing TikTok
Jan 14, 2025, 10:18 AM
Tesla shares gained as investors priced in Elon Musk's reach across a variety of industries.
Trump wants to 'save' TikTok. One rescuer could be Elon Musk.
Jan 14, 2025, 7:54 AM
Chinese government officials have reportedly discussed selling TikTok's US operations to Elon Musk. Antitrust experts predict that the owner of X could clear any US legal hurdles if such a deal were to happen.
China Discusses Sale of TikTok US to Musk as One Possible Option
Jan 13, 2025, 7:07 PM
(Bloomberg) -- Chinese officials are evaluating a potential option that involves Elon Musk acquiring the US operations of TikTok if the company fails to fend off a controversial ban on the short-video app, according to people familiar with the matter.Most Read from BloombergThese Homes Withstood the LA Fires. Architects Explain WhyA Blueprint for Better Bike LanesWhat Robotaxis Brought San FranciscoAmbitious High-Speed Rail Plans Advance in the Baltic RegionBeijing officials strongly prefer that