DNYUZ
  • Home
  • News
    • U.S.
    • World
    • Politics
    • Opinion
    • Business
    • Crime
    • Education
    • Environment
    • Science
  • Entertainment
    • Culture
    • Music
    • Movie
    • Television
    • Theater
    • Gaming
    • Sports
  • Tech
    • Apps
    • Autos
    • Gear
    • Mobile
    • Startup
  • Lifestyle
    • Arts
    • Fashion
    • Food
    • Health
    • Travel
No Result
View All Result
DNYUZ
No Result
View All Result
Home News

SEC Charges Elon Musk With “Ill-Gotten Gains” From Late Disclosure Of Initial Twitter Investment

January 14, 2025
in News
SEC Charges Elon Musk With “Ill-Gotten Gains” From Late Disclosure Of Initial Twitter Investment
540
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

The Securities and Exchange Commission filed an action against Elon Musk dating back to his 2022 acquisition of Twitter, now X. alleging that he was “enriched” to the tune of $150 million by not reporting a stake he had amassed in the social media platform within a required five day window and, instead, buying more stock.

His gain came at the expense of other Twitter shareholders, the Commission said. Had his initial investment been made public in time, the stock would have risen (as it did later) and Musk’s subsequent investment would have cost him more. Likewise, shareholders who sold before Musk disclosed his stake received a lower price.

SEC rules give investors a five-day window to report a 5% or more ownership position in a public company but Musk took longer, “in violation of the beneficial ownership reporting requirements” under the Securities Exchange Act.

Watch on Deadline

According to the SEC’s complaint, Musk saved at least $150 million at the expense of Twitter shareholders by failing to file the beneficial ownership report in a timely manner.

“Congress enacted the beneficial ownership reporting requirements to, among other things, help investors make informed investment decisions by providing information about accumulations of certain classes of equity securities by persons who have the potential to change or influence control of the issuer companies,” the SEC said.

According to the complaint, after Musk failed to “timely file” a beneficial ownership report by   the required date of March 24, 2022, he purchased more than $500 million worth of Twitter common stock between March 25-April 1 2022.

“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.”

According to the SEC’s complaint, Musk underpaid by at least $150 million for his purchases of Twitter common stock in this period. The complaint further alleges that, due to Musk’s failure to timely file a beneficial ownership report with the SEC, investors who sold Twitter common stock between March 25, 2022 and April 1, 2022 did so at artificially low prices, thereby suffering substantial economic harm.

The SEC’s complaint, filed in the U.S. District Court for the District of Columbia, seeks permanent injunctive relief, “disgorgement of ill-gotten gains” plus prejudgment interest, and civil penalties.

The post SEC Charges Elon Musk With “Ill-Gotten Gains” From Late Disclosure Of Initial Twitter Investment appeared first on Deadline.

Tags: Elon MuskTwitter
Share216Tweet135Share
With Possible Position Change, Blue Jays’ Bo Bichette’s Trade ‘Market Opens Even More’
News

With Possible Position Change, Blue Jays’ Bo Bichette’s Trade ‘Market Opens Even More’

by Newsweek
May 9, 2025

Despite some significant effort to lock in more talent, the Toronto Blue Jays have posted a losing record to start ...

Read more
News

Pope Leo XIV is first Augustinian friar to become pontiff

May 9, 2025
News

Tufts University student Rumeysa Ozturk ordered released from ICE detention

May 9, 2025
News

Dem Congress members storm New Jersey ICE prison to conduct ‘oversight visit’: ‘People deserve dignity’

May 9, 2025
News

House Homeland Security Chairman demands ‘unredacted’ video, docs from Kilmar Abrego Garcia’s traffic stop

May 9, 2025
Menendez brothers’ bid for freedom set to reach a courtroom next week

Menendez brothers’ bid for freedom set to reach a courtroom next week

May 9, 2025
I had kids in my early 20s and again in my late 30s. I’m more confident as an older mom.

I had kids in my early 20s and again in my late 30s. I’m more confident as an older mom.

May 9, 2025
Local Officials Brace for Loss of Disaster Preparedness Funding

Local Officials Brace for Loss of Disaster Preparedness Funding

May 9, 2025

Copyright © 2025.

No Result
View All Result
  • Home
  • News
    • U.S.
    • World
    • Politics
    • Opinion
    • Business
    • Crime
    • Education
    • Environment
    • Science
  • Entertainment
    • Culture
    • Gaming
    • Music
    • Movie
    • Sports
    • Television
    • Theater
  • Tech
    • Apps
    • Autos
    • Gear
    • Mobile
    • Startup
  • Lifestyle
    • Arts
    • Fashion
    • Food
    • Health
    • Travel

Copyright © 2025.