The SEC filed a lawsuit against Elon Musk, alleging securities fraud for failing to disclose his stake in Twitter in 2022, which allowed him to purchase shares at artificially low prices. Musk acquired over 5% of Twitter before the required disclosure, missing the deadline and underpaying by at least $150 million. The SEC claims Musk's delay in reporting benefited him by enabling stock purchases at a reduced cost, and it is seeking a jury trial for disgorgement and penalties. Musk is set to gain influence in the White House as President-elect Trump's second term begins, leading an advisory group focused on reducing regulations, including those impacting Musk's companies.
Category
🗞
NewsTranscript
00:00It's Benzinga bringing Wall Street to Main Street.
00:02The SEC filed a lawsuit against Elon Musk alleging securities fraud for failing to disclose
00:07his stake in Twitter in 2022, which allowed him to purchase shares at artificially low prices.
00:12Musk acquired more than 5% of Twitter before the required disclosure,
00:16missing the deadline and underpaying by at least $150 million.
00:20The SEC claims Musk's delay in reporting benefited by enabling stock purchases
00:25at a reduced cost, and is seeking a jury trial for disengagement and penalties.
00:30Musk is set to gain influence in the White House as President-elect Trump's second term begins,
00:34leading an advisory group focused on reducing regulations,
00:37including those impacting Musk's companies.