SEC сlaims Musk saved $150M in Twitter deal by delayed disclosure

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Mikhail Vnuchkov

15.01.2025

SEC сlaims Musk saved $150M in Twitter deal by delayed disclosure — SEC sues Musk over Twitter acquisition deal

The U.S. Securities and Exchange Commission (SEC) has filed a complaint in the U.S. District Court for the District of Columbia, seeking a court injunction and $150 million in fines and interest from Elon Musk for violating reporting requirements during his purchase of Twitter.

The complaint alleges that Musk, who owned more than 5% of Twitter's shares as of March 2022, failed to disclose his holdings in a timely manner before March 24, 2022. Between March 25 and April 1, he purchased additional Twitter shares worth $500 million.

According to the SEC, the delayed disclosure of Musk's beneficial ownership allowed him to acquire Twitter shares at lower prices, saving $150 million and causing economic harm to other investors.

While Musk spent a staggering $44 billion to acquire Twitter in 2022—an amount many believe was excessive—the SEC has accused the tech mogul and co-head of the Department of Government Efficiency (DOGE) under the Trump administration of violating reporting requirements under the Securities Exchange Act of 1934.

Musk's attorney, Alex Spiro, has already responded to the lawsuit, calling it "fabricated" in a statement to the Associated Press. He also suggested that the SEC's actions against Musk are subjective and that the latest lawsuit reflects the agency's inability to build a substantial case against him.

A history of conflicted relations

This latest escalation between the regulator and Musk has reignited discussions on social media about past incidents involving the billionaire and the SEC, including his controversial statements that harmed investors.

For instance, in August 2018, Musk tweeted that he had secured funding to take Tesla private, causing the automaker's shares to soar. When the deal failed to materialize, the shares plummeted, and shareholders accused Musk of fraud and stock price manipulation.

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Musk appears to dismiss that episode as insignificant and regards the SEC's actions as harassment.

In recent years, Musk has made a habit of pumping meme coins through mentions on his social media pages. His favorite meme coin, DOGE, has even become the acronym for the Department of Government Efficiency, a department Musk now co-leads with entrepreneur Vivek Ramaswamy.

As we wrote, on December 20, hackers breached Vivek Ramaswamy’s account on social media platform X, using it to promote false information about a strategic partnership between D.O.G.E. and the USUAL stablecoin project. This fake announcement caused the USUAL token price to surge.

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SEC сlaims Musk saved $150M in Twitter deal by delayed disclosure

A history of conflicted relations

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