SEC Sues Elon Musk Over Alleged Failure to Disclose Twitter Stock Purchases

Elon Musk is facing a lawsuit from the U.S. Securities and Exchange Commission (SEC), which alleges that the billionaire failed to disclose his significant ownership of Twitter stock in early 2022.

According to the SEC, Musk’s delayed disclosure allowed him to save at least $150 million before acquiring the social media platform later that year. The complaint states that Musk began purchasing Twitter shares in early 2022, surpassing the 5% ownership threshold by March of that year. Under U.S. securities law, Musk was required to publicly disclose his ownership within 10 days of crossing that threshold. However, the filing claims Musk failed to make the disclosure until April 4—11 days after the deadline.

This alleged delay in reporting his stake may have given Musk an unfair advantage, allowing him to buy additional shares at lower prices before the market reacted to the news of his substantial stake in the company. Musk ultimately purchased Twitter in October 2022 in a highly publicized $44 billion deal, later rebranding the platform as X.