SEC Commission cites Elon Musk for fraud over Twitter stock purchase

Musk accused of delaying the declaration of his Twitter shares, saving 150 million

The Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk for alleged fraud related to the purchase of Twitter shares. The US regulator accuses Musk of failing to declare his acquisition of five per cent of the company’s shares in a timely manner, which would have allowed him to obtain shares at a lower price, saving around $150 million. According to the SEC, Musk’s late disclosure misled other investors.

Musk bought Twitter, later renamed X, for $44 billion in 2022. Despite the allegations, Musk dismissed the criticism, calling the SEC ‘broken’ and accusing it of wasting time on irrelevant issues. The SEC’s current chairman, Gary Gensler, has announced that he will step down in January with Donald Trump’s return to the White House, and it is unclear whether the new administration will continue with the lawsuit.

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