The Securities and Exchange Commission sued Elon Musk on Tuesday for allegedly committing securities fraud when he amassed a large share of Twitter stock in 2022 without following disclosure rules.
In a lawsuit filed in federal court, the SEC said Musk did not publicly share that he had amassed a 5% stake in the company prior to his full takeover, “allowing him to underpay by at least $150 million for shares he purchased after his financial beneficial ownership report was due.”
Musk ultimately waited 11 days after purchasing his stake to file the required disclosures, the SEC alleges.
This is a breaking story and will be updated.