Musk sued by SEC for failing to disclose Twitter stock purchases quickly enough

Elon Musk, the world’s wealthiest person and the apparent right-hand man of incoming U.S. president Donald Trump, has been taken to court for a third time by the Securities and Exchange Commission (SEC) for allegedly violating securities law.

In the most recent case, filed Tuesday in the U.S. District Court for the District of Columbia, the SEC claimed that Musk did not disclose his newly acquired beneficial ownership stake in Twitter, now called X, quickly enough in March and April of 2022.

By SEC rule, people who acquire more than five percent of a company must disclose their beneficial ownership stake within 10 days. Musk acquired nine percent of Twitter by March 14 but did not disclose that fact until April 4, according to the SEC’s order. The lapse in disclosure allowed Musk to acquire Twitter stock at an artificially lowered price, the SEC said, saving him $150 million.