Nikolas Sargeant
The Securities and Exchange Commission (SEC) has launched legal action against Elon Musk, alleging the tech billionaire violated securities laws while accumulating Twitter shares in 2022. The lawsuit, filed Tuesday in Washington, D.C.'s U.S. District Court, claims Musk deliberately delayed reporting his ownership stake to secure shares at artificially depressed prices.
SEC Claims Musk Deliberately Delayed Share Disclosures
The regulatory body alleges Musk failed to meet mandatory disclosure requirements when his Twitter holdings exceeded the 5% threshold. According to the SEC's filing, this delay enabled Musk to acquire additional shares at reduced prices, resulting in approximately $150 million in underpayment. The investigation extends to potential securities fraud involving Tesla stock sales used to finance the eventual $44 billion Twitter acquisition, now rebranded as X.
Musk's response came through his attorney, Alex Spiro, who dismissed the allegations as baseless. "This is nothing more than a sham lawsuit stemming from their ongoing campaign against Musk," Spiro stated, characterizing the complaint as "ticky-tack." Musk himself had previously claimed on X that the SEC pressured him to accept a rapid settlement including fines.
Platform Changes Spark Fresh Controversies
Since taking control of X, Musk's leadership decisions have generated significant debate. His recent announcement to prioritize "informative" content has raised concerns about potential viewpoint suppression. Critics point to incidents like the reported removal of premium features from accounts opposing Musk's immigration reform stance as evidence of selective censorship.
International Tensions Rise Over Political Influence
Musk's influence has drawn international scrutiny, particularly in Germany, where authorities have accused him of attempting to influence elections through his support of the far-right Alternative für Deutschland party. Despite criticism from German officials, including ongoing tensions with Chancellor Olaf Scholz, Musk maintains his right to express political views as a business operator within the country.
