Elon Musk Faces Lawsuit from US Commission Over $150 Million Twitter Claim
The SEC has sued Elon Musk, alleging he underpaid for Twitter shares by $150 million
Elon Musk, SEC, Twitter, X, Lawsuit, Investment, Donald Trump, USA
San Francisco: So, it looks like Elon Musk is in hot water again. The SEC is suing him, claiming he didn’t disclose his ownership of over 5% of Twitter shares in time. They say he underpaid by a whopping $150 million!
He bought Twitter back in October 2022 for $44 billion, but now it’s worth just $9.4 billion. Ouch! That’s a huge drop, right?
Musk started buying shares in early 2022, and by March, he had crossed that 5% threshold. But he didn’t let anyone know until April 4, which was way past the deadline.
It’s interesting because after he signed the deal to buy Twitter, he actually tried to back out. The company had to sue him to make sure he followed through with the purchase.
The SEC kicked off an investigation in April 2022 to see if he broke any laws with his stock purchases and statements. They even tried to get him to testify before filing this lawsuit.
Now, with the upcoming change in administration, it’s unclear if the new team will keep pursuing this case. Musk has connections with the incoming Trump administration, which adds another layer to this whole situation.