Connect with us

Hi, what are you looking for?

American Stock ReviewAmerican Stock Review

Tech News

Elon Musk is being sued by the feds over the way he bought Twitter

Illustration by Kristen Radtke / The Verge; Getty Images

Elon Musk’s acquisition of Twitter has resulted in a federal lawsuit by the Securities and Exchange Commission alleging that he broke securities laws with a late disclosure, and saved $150 million in the process.

Before Musk agreed to buy Twitter for $44 billion, before he tried to back out of that deal, before he was forced to go through with it, and before he changed its name to X, he started by acquiring a substantial stake in the company but didn’t reveal that fact until weeks later.

The only problem, as the SEC pointed out then, is that by the time he disclosed that stake, it was outside the agency’s required 10-day window. They claim that he should’ve filed his paperwork by March 24th, 2022, instead of when he actually did, on April 4th (and then again on April 5th). During that period, they say he purchased more than $500 million in shares of the company.

However, with only a few days left before the Trump administration takes over and installs a new head of the SEC (along with Elon Musk reportedly snagging an office in the White House complex), it’s unclear how far the lawsuit will go.

The SEC claims Musk cost investors at least $150 million due to the late disclosure and that he harmed any investors who sold stock between March 25th, 2022, and April 1st, 2022. Its lawsuit is seeking the money Elon made as a result of holding off on the disclosure, as well as a civil penalty and other punishments.

You May Also Like

Tech News

This meat-handed mess was generated using DaVinci AI with the prompt “a photorealistic person looking at their phone with a disgusted expression.” | Image:...

Tech News

Sony’s “cosmic red” DualSense Wireless Controller is down to $54.99 ($20 off) for a limited time. | Photo by Cameron Faulkner / The Verge...

Tech News

Image: Netflix After years of brand tie-ins and ill-conceived spinoffs, the series is back — and it’s just as tense as ever. Read the...

Business

If the Covid era marked a boom time for digital health companies, 2024 was the reckoning. In a year that saw the Nasdaq jump...