The Securities and Exchange Commission on Tuesday filed a lawsuit against Elon Musk, alleging that X Owner misled shareholders about his 2022 purchase of Twitter stock.
The lawsuit alleges that Musk violated federal securities laws by allowing him to buy Twitter stock at artificially low prices before buying the social media site for $44 billion. Musk criticized the SEC as “just another weaponized agency doing political dirty work.”
According to SEC filings, Musk began purchasing shares of Twitter Inc. (later renamed Company obtained. He was required to file a report with the SEC disclosing his purchases, but the complaint says he failed to file the report “in a timely manner,” and the stock purchased by other investors during that period was lost. The lawsuit alleges that the company ended up paying at least $150 million less.
The commission said Musk waited until April 4, 2022, 11 days after the report deadline, to disclose his beneficial ownership in SEC filings.
“Investors who sold Twitter common stock during this period suffered significant financial harm because they sold at an artificially low price,” the SEC alleges in its lawsuit.
The SEC is asking the court to order Musk to pay “deprivation of unjust enrichment resulting from his violations.” The SEC is also seeking civil penalties.
Musk responded to news of the X Company lawsuit Tuesday night, calling the SEC a “completely broken organization.”
“They spend their time doing this when there are so many crimes that actually go unpunished,” Musk wrote.
Mr. Musk in July 2022 tried to pull it out Regarding the deal to acquire Twitter, the company was sued to cause him to maintain their consent, and he completed the takeover in October of that year.
Musk has had ties to the SEC before. The SEC filed a complaint in 2018 accusing Musk of misleading Tesla investors. In 2023, the SEC said: seek court order Forced to testify as part of the investigation into Mr. Musk’s purchase of Company X. he later testified For investigation.
The SEC’s lawsuit comes just before Chairman Gary Gensler’s scheduled resignation from the commission. It is unclear whether the new administration will continue the lawsuit. President-elect Donald Trump has selected Paul Atkins as the new SEC Commissioner.
Musk is prominent trump supporter and republican donorselected by President Trump to lead the Department of Government Efficiency, or doge.
