Elon Musk Faces SEC Lawsuit Over Twitter Stock Disclosure

Elon Musk Faces SEC Lawsuit Over Twitter Stock Disclosure-OXYGIST

Elon Musk, the billionaire entrepreneur and owner of Twitter (now rebranded as X), is at the center of a legal battle with the U.S. Securities and Exchange Commission (SEC). The lawsuit alleges that Musk failed to disclose his acquisition of Twitter stock within the legally required timeframe in early 2022, a move the SEC claims allowed him to save millions.


According to the SEC, Musk began buying Twitter shares early in 2022 and had accumulated over 5% ownership by March. By law, he was required to publicly disclose this ownership within 10 days, but the complaint states he delayed until April 4—11 days past the deadline. The SEC argues this delay enabled Musk to underpay by at least $150 million for the shares he acquired before the disclosure.


Musk officially purchased Twitter in October 2022, later rebranding it as X. However, the journey to the acquisition was far from smooth. After signing an agreement to buy Twitter in April 2022, Musk attempted to back out, prompting the company to sue him to complete the deal.


Alex Spiro, Musk’s attorney, dismissed the SEC’s lawsuit, calling it a “sham.” In a statement, Spiro accused the SEC of engaging in a “multi-year campaign of harassment” against Musk and characterized the case as a minor administrative issue. “Even if proven, the alleged failure to file a single form carries only a nominal penalty,” he said.


The SEC revealed that it had launched an investigation in April 2022 to determine whether Musk violated securities laws during his purchase of Twitter stock and in his related public statements. As part of this probe, the SEC sought to compel Musk to testify in court—a move that preceded the filing of the current lawsuit. 

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