SEC Sues Elon Musk for Not Reporting Twitter Stock Buys

SEC says Musk was obliged to disclose his Twitter stock ownership by March 24 Since he didn’t do that, he was able to buy more stock between March 25 and April 1 with a major discount People who sold before knowing of Musk’s actions were also harmed, the SEC says Earlier this week, the US Securities and Exchange Commission filed a lawsuit against billionaire tech mogul Elon Musk, claiming he did not disclose his ownership of Twitter stock as federal law mandates. As a result, he was able to buy more stock, and ultimately the entire company, at “artificially low prices.” Before agreeing to purchase the social media giant, Elon Musk was actively buying Twitter stock. By mid-March 2022, he managed to purchase more than 5% of the company’s common stock. This meant that, per the beneficial ownership reporting requirements, under the Securities Exchange Act of 1934, he was obliged to report his ownership to the SEC within 10 calendar days, a deadline which expired on March 24, 2022. In the next few days, between March 25, 2022, and April 1, 2022, he made more purchases, totaling more than $500 million. The SEC alleges that since the general publ… The post SEC Sues Elon Musk for Not Reporting Twitter Stock Buys appeared first on Coin Edition .