The U.S. Securities and Exchange Commission (SEC) sued Elon Musk over his $44 billion purchase of Twitter, now called X, in 2022.
The SEC claims that Musk “failed to timely file a beneficial ownership report with the Commission after acquiring beneficial ownership of more than five percent of the outstanding shares of Twitter, Inc. common stock, in violation of the beneficial ownership reporting requirements under the Securities Exchange Act of 1934.”
“As alleged, because Musk failed to timely file a beneficial ownership report with the SEC, he was able to make these purchases of Twitter common stock at artificially low prices from the unsuspecting public, who had not yet priced in the undisclosed material information of Musk’s beneficial ownership of more than five percent of Twitter common stock and investment purpose,” the litigation release adds, noting that “Musk underpaid by at least $150 million for his purchases of Twitter common stock in this period.”
According to the lawsuit, Musk’s actions led to investors suffering “substantial economic harm,” as those who “sold Twitter common stock during this period did so at artificially low prices.”
Musk’s attorney, Alex Spiro, told The Epoch Times in an email that the lawsuit is a “sham.” Spiro stated that Musk “has done nothing wrong and everyone sees this sham for what it is.”
SEC Chief Accountant Paul Munter plans to retire on January 24.
“I thank Paul for his leadership of the Office of the Chief Accountant, his counsel, and his clear accounting advice,” said SEC Chair Gary Gensler. “As Chief Accountant, he led the office in the critical work of ensuring that investors have access to the highest-quality financial disclosures from public companies. I wish him the best in his retirement from federal service.”
