SEC Accuses Elon Musk of Breaking Rules in Twitter Stock Buy

SEC Targets Musk for Missing Disclosure Deadline
The U.S. Securities and Exchange Commission (SEC) has accused Elon Musk of violating securities laws by failing to disclose his 5% ownership of Twitter stock on time. Musk hit the 5% ownership threshold on March 14, 2022, but delayed filing the required disclosure until April 4—11 days past the legal deadline.

SEC Claims Musk Saved $150 Million
The SEC alleges that Musk used the delay to buy additional Twitter shares at lower prices, saving himself at least $150 million. Once Musk’s stake was disclosed, Twitter’s stock price surged by 27%, significantly increasing the value of his holdings. The SEC argues this delay gave Musk an unfair advantage over other investors who lacked the same information.

Musk Fires Back
In a Jan. 15 post on X (formerly Twitter), Musk called the SEC a “totally broken organization,” accusing it of focusing on trivial matters instead of addressing real crimes. His lawyer, Alex Spiro, dismissed the lawsuit as a baseless “harassment campaign,” insisting that Musk had done nothing wrong.

SEC Seeks Penalties
The SEC is demanding a jury trial and financial penalties, as well as the return of Musk’s alleged unjust profits. The lawsuit marks another chapter in the tense relationship between Musk and the SEC, which has pursued several legal actions against him in recent years.