In another row between the watchdog and Tesla billionaire, The US Securities and Exchange Commission has filed a lawsuit against Elon Musk.
The US Securities and Exchange Commission has filed a lawsuit against Elon Musk.
It alleges the Tesla billionaire, 53, failed to disclose his acquisition of a significant stake in Twitter within the required timeframe.
The regulator claims the alleged move allowed him to buy shares at “artificially low prices” – apparently saving him $150 million.
Under SEC rules, investors holding more than 5 per cent of a company’s shares must report their position within 10 days.
Elon disclosed his 9.2 per cent stake 21 days late, the SEC alleges in court documents filed in Washington DC.
It said in its complaint: “Musk’s violation resulted in substantial economic harm to investors.”
The watchdog added the late filing misled the market and disadvantaged other investors.
Musk responded sharply on social media, calling the SEC a “totally broken organisation” and accused the regulator of wasting time on him when “there are so many actual crimes that go unpunished”.
His lawyer Alex Spiro described the lawsuit as “a sham” and a “campaign of harassment” in a statement emailed to the BBC.
According to the SEC, Twitter’s share price surged more than 27 per cent after Elon revealed his stake on 4 April 2022.
The entrepreneur later acquired the platform for $44 billion in October 2022, rebranding it as X.
The regulator is seeking to recover what it calls “unjust” profits and impose a fine.
Its case adds to Elon’s fraught relationship with the SEC.
The body’s chair, Gary Gensler, who announced plans to step down when Donald Trump resumes the presidency, has had several public clashes with the Tesla boss.
Elon’s disputes with the SEC stretch back to 2018, when he settled fraud charges for claiming he had “funding secured” to take Tesla private.
He stepped down as chairman and accepted social media oversight as part of the settlement.
Elon Musk hit by lawsuit from US Securities and Exchange Commission
