Home / Business and Economy / Judge Rules Against Musk in Twitter SEC Disclosure Case
Judge Rules Against Musk in Twitter SEC Disclosure Case
4 Feb
Summary
- Judge rejected Musk's attempt to dismiss SEC lawsuit over Twitter share disclosure.
- SEC claims Musk's delay in reporting Twitter stake artificially lowered prices.
- Musk must repay $150 million allegedly saved by delaying disclosure.
A federal judge has denied Elon Musk's request to dismiss a lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The SEC alleges that Musk waited 11 days in early April 2022 to disclose his initial 5% stake in Twitter.
This delay, according to the SEC, allowed Musk to acquire more than $500 million in shares at prices depressed by the lack of public information. The agency is seeking $150 million in alleged savings from Musk, plus a civil fine.
