SEC Sues Musk Twitter Stocks Manipulation During Acquisition
Elon Musk has come face to face with a lawsuit from the Securities and Exchange Commission due to failing to disclose acquiring more than 5% of Twitter stock on time, which would have saved $150 million, in a new move in the Elon Musk SEC legal theatricals.
The narrative began back in October 2023, when Elon Musk SEC court rule came into effect for failing to disclose his acquisition of the Twitter stock in a timely manner.
According to the Security Commission, the value of the SEC fines Musk faced come from the billionaire’s acquisition of Twitter shares in March 2022, but his stake of 5% was disclosed on April 4, 2022 – 11 days after the due date.
At that point, Musk had already achieved over 9% ownership of Twitter’s shares, with the delay giving Musk more time to purchase Twitter stock at a lower price, saving around $150 million, leading one of the biggest SEC charges since the legal series began.
The Elon Musk SEC lawsuit will impose a civil penalty against the tech billionaire and oblige him to make money from profits made because of his overdue disclosure.
“Mr. Musk has done nothing wrong and everyone sees this sham for what it is,” said Musk’s attorney adding that “has done nothing wrong and everyone sees this sham for what it is.”
Why Sec’s Charge to Elon Musk Is Justified?
After Musk’s $44 billion acquisition of Twitter in 2022 and rebranding it as X, and shortly after that came the initiation of the SEC investing Musk.
The timing of the news surrounding how Musk violates SEC rules, initiated just before President Trump’s inauguration demonstrate the Biden Administration’s latest move against Trump, through his recently forged friendship with Musk. The political motivations in the move are clear, it’s not merely a jab at Musk, as much as its directed at the President-elect’s direction of regulatory enforcement under the new administration, according to Wired.
Some might call it a low blow. Others call it politics.
In November 5,2024 the election of President Donald Trump set Musk’s controversial role as the director of new Trump administration’s Department of Government Efficiency (DOGE), possibly complicating the matter further.
The appointing of Musk by President Trump to be the leading one in DOGE means that he truly believed in his ability for driving innovation and efficiency. But incidents like this stock disclosure that led to SEC charges Elon Musk case make one doubt whether Musk’s approach squares with ethical standards. If leaders in the tech world act with no responsibility in the Elon Musk SEC cases it may set a very bad example for the sector.
A question would be if this was the beginning of corruption in the sector in the case of Elon Musk and SEC, where influence and resources ran louder than compliance with regulations. As the tech world continues to rise in its influence in the world politics in cases such Elon Musk SEC and economics, incidents of this nature raise necessary questions about decisions made regarding leadership and call for stricter supervision of such cases.
The chances in the SEC charges Elon musk are higher than in individual cases, because it’s a charge on an influential person where people take his word is considered.
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