The US Securities and Stock Exchange Committee filed a lawsuit against Elon Musk on Tuesday, which claimed the failure to reveal in a timely manner that he bought more than 5 % of Twitter shares in 2022 before assuming the social media company.
The lawsuit, which was filed in a federal court in Washington, accuses MUSK- that Trump used to participate in taking the so-called “Ministry of Governmental efficiency”-by violating the Federal Securities Law for the late disclosure.
The litigation confirms the long tension between Musk, who supported President -elect Donald Trump and the American government. The eccentric billionaire clashed with the Supreme Education Council before, including what the agency described as the name Wrong and misleading data He had posted on Twitter about taking his other company, Tesla, especially.
A federal jury in San Francisco in February 2023 surveyed the claims by Tesla investors that he had defrauded them.
Under Federal Law, Musk was asked to unveil its share in Twitter 10 days after more than 5 % of Twitter shares in March 2022, according to the case.
Instead, Musk revealed his share in Twitter in April 2022, 11 days after the regulatory deadline. By that time, billionaire bought 9 % of Twitter shares. TWTTER has jumped more than 27 % at the closing price of the day before Musk disclosed.
“As a result, Musk was able to continue buying the shares at artificially low, which allowed it to pay at least $ 150 million for the shares he bought after his useful ownership report was worthy,” the case said.
The procedure also affected investors who did not know about the Musk share and ended up selling Twitter shares at low prices, as SEC claims.
“Mr. Musk has not committed any sinner and that everyone sees this malice for what he is,” Alex Spiro, the lawyer for Musk, said in a statement. The Supreme Education Council was accused of engaging in a “multi -year harassing campaign” against the billionaire, which “culminated in submitting a self -subject to TAK” against him.
SEC Gary Gensler’s president on January 20 is the day of Trump’s inauguration. In December, Trump said he would nominate Paul Atkins, an encrypted currency lawyer, to lead the securities organizer.
The large Musk stake in Twitter was an early sign in 2022, which might buy the company, which was struggling to attract advertisements and compete with larger social networks such as Facebook.
After trying to return from buying a social media company for $ 44 billion, he completed his acquisition of Twitter in October 2022. Musk, who renamed Twitter to X and took the private company, said that he bought the platform to promote freedom of expression.