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The U.S. Securities and Exchange Commission (SEC) Musk On Tuesday, the billionaire was accused of committing securities fraud in 2022 by failing to disclose his ownership in Twitter and buying shares at an “artificially low price.”
Musk serves as CEO of both Tesla and SpaceX bought twitter Acquired the social network for $44 billion and later changed the name of the social network to X. .
According to the SEC’s complaint, Musk withheld this important information “which allowed him to underpay at least $150 million for the shares he purchased after financial beneficial ownership reports were due.”
SEC had investigation Did Musk or anyone working with him commit securities fraud in 2022? Tesla The CEO sold shares in his car company and increased his stake in Twitter ahead of a leveraged buyout. Musk explain A post last month on
Alex Spiro, Musk’s attorney, said in an emailed statement that the move was an admission by the SEC that “they can’t bring an actual case.” He added that Musk “did nothing wrong” and called the lawsuit a “sham” and the result of a “years-long campaign of harassment” that culminated in “a single allegation.”
President-elect Donald Trump’s second term begins on January 20, just a week before Musk takes on a potentially influential role in the administration. A major financial backer, he is poised to play an important role in the campaign.
In July, Trump vowed to fire SEC Chairman Gary Gensler. After Trump was elected, Gensler announced his resignation.
In a separate civil lawsuit over the Twitter deal, the Oklahoma Firefighters Pension and Retirement System is suing Musk, accusing him of intentionally concealing his incremental investment in the social network and his intent to acquire the company. Lawyers for the pension fund argued that Musk’s failure to clearly disclose his investments affected the decisions of other shareholders and put them at a disadvantage.
This story is developing.
