Elon Musk is being sued by the SEC over his Twitter takeover. What we know
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The Tesla CEO bought Twitter in October 2022 for $44 billion and rebranded it as X. Elon Musk is being sued by the U.S. Securities and Exchange Commission over his 2022 Twitter takeover. The agency alleges that the billionaire failed to disclose his ownership of Twitter stock in a timely manner, saving himself at least $150 million “at the expense of shareholders.”.
![[Musk is just days away from wielding enormous influence and power in the White House when President-elect Donald Trump takes office]](https://static.independent.co.uk/2025/01/15/15/2193290157.jpg)
The Tesla and SpaceX CEO acquired Twitter for $44 billion in October 2022 and rebranded it as X. Musk, the world’s richest man, is just days away from wielding enormous influence and power in the White House when President-elect Donald Trump takes office.
Here’s what to know about the SEC’s civil complaint. Musk, according to the SEC’s complaint filed in U.S. District Court in Washington, D.C, purchased more than $500 million worth of Twitter stock between March 25, 2022, and April 1, 2022, and owned more than five percent of the company. He was required by law to disclose this information, but failed to do so until April 4, the SEC said.
The agency claimed that investors and the “unsuspecting public” who sold Twitter stock during that period did so “at artificially low prices,” which led them to suffer “substantial economic harm.”. “As alleged, because Musk failed to timely file a beneficial ownership report with the SEC, he was able to make these purchases of Twitter common stock at artificially low prices from the unsuspecting public, who had not yet priced in the undisclosed material information of Musk’s beneficial ownership of more than five percent of Twitter common stock and investment purpose,” the SEC said in a release.
