The Securities and Exchange Commission (SEC), the Wall Street market authorities, filed a lawsuit against Elon Musk, accusing him of failing to disclose his ownership of Twitter stock on time in early 2022, AP reported.
The SEC alleges that Musk’s delay in reporting his stake allowed him to save at least USD 150 million when he later purchased additional shares of the company, which he fully acquired in October 2022 and rebranded as X.
According to the SEC, Musk began buying Twitter shares in early 2022 and had crossed the 5% ownership threshold by March. Federal securities laws require public disclosure of such ownership within ten days, but Musk allegedly waited until April 4 to report his holdings—11 days late.
The lawsuit marks another chapter in Musk’s turbulent relationship with federal regulators. His lawyer, Alex Spiro, dismissed the allegations as baseless, calling the SEC’s move a “sham.”
Spiro said the case reflected the agency’s inability to mount a substantive argument and described the issue as a minor administrative oversight.
“This lawsuit is an admission by the SEC that they cannot bring an actual case,” Spiro said in a statement. He argued that even if Musk failed to file the required paperwork on time, the offense would result in only a “nominal penalty.”
The SEC’s investigation into Musk’s actions surrounding his Twitter acquisition began in April 2022. The agency claims it authorized the probe to determine whether Musk violated any security laws during his stock purchases and related public statements.
The SEC also sought to compel Musk to testify during the investigation, a request he resisted.
Musk’s final acquisition of Twitter came after a legal battle. He initially signed a deal to buy the platform in April 2022 but later attempted to back out, prompting Twitter to sue and force the sale.
With SEC Chair Gary Gensler planning to leave his post on January 20, the future of the lawsuit remains uncertain, depending on whether the new administration will pursue the case against Musk.
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