SEC Sues Elon Musk Over Twitter Shares Disclosure

The US Securities and Exchange Commission has filed a lawsuit against Elon Musk, alleging that he failed to disclose his early 2022 Twitter stock ownership in a timely manner. This allegedly allowed Musk to pay significantly less for the shares. Legal proceedings and potential changes in SEC leadership are pending.

The US Securities and Exchange Commission (SEC) has taken legal action against billionaire entrepreneur Elon Musk, alleging he did not disclose his substantial Twitter stock holdings in early 2022 as required by law.

The SEC claims Musk's late disclosure allowed him to purchase the shares at an underpriced valuation of at least $150 million. Musk amassed more than 5% of Twitter shares in March 2022 but delayed the necessary disclosure until April 4, days past the deadline.

Amid legal back-and-forth, the SEC authorized an investigation into potential securities law violations and sought to compel Musk's testimony. With SEC Chair Gary Gensler stepping down in January, the lawsuit's future remains uncertain.

(With inputs from agencies.)