U.S. Regulatory Firm Sues Elon Musk for Violation of Federal Securities Laws

Published at: 15/01/2025 11:16 AM

The financial markets regulatory authority (SEC) in the United States (USA) sued Elon Musk because the repurchase of Twitter (now X) shares in 2022 was carried out with violations, according to a court filing released last Tuesday.

“The defendant, Elon Musk, failed to file an effective ownership report with the SEC in time to reveal his acquisition of more than 5% of the outstanding common shares of Twitter in March 2022, in violation of federal securities laws,” the authority detailed according to information reported by the press.

SEC details that “this omission would have allowed him to avoid paying at least 150 million dollars for the shares he purchased after the expiration of his effective ownership.”

“Today's procedure is an admission by the SEC that it doesn't have a strong enough case, because Mr. Musk hasn't done anything wrong,” AFP reported, according to statements from Musk's lawyer, Alex Spiro.

Mazo News Team