The SEC on Tuesday filed a suit against Elon Musk, alleging the billionaire violated securities law by acquiring Twitter shares at “artificially low prices.” In his purchases, Musk underpaid for Twitter shares by at least $150 million, the SEC says. Musk bought Twitter in 2022 for about $44 billion, later changing the name to X. Beata Zawrzel | Nurphoto | Getty Images
The SEC filed a lawsuit against Elon Musk on Tuesday, alleging the billionaire violated securities law in 2022 by failing to disclose he had amassed an active stake in Twitter, a secrecy that allowed him to buy shares at “artificially low prices.”
Musk, who is also CEO of Tesla and SpaceX, purchased Twitter for $44 billion in late 2022 and changed the name to X the following year. Prior to the acquisition, he’d built up a position in the company of greater than 5%, which would’ve required disclosing his holdings to the public within 10 calendar days of reaching that threshold.
According to the SEC’s civil complaint, filed in U.S. District Court in Washington,