Legal Implications of Elon Musk’s Twitter Takeover Explored
Elon Musk is facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) over his 2022 acquisition of Twitter, now known as X. The SEC alleges that Musk failed to timely disclose his ownership of more than 5% of Twitter’s shares, a delay that reportedly saved him approximately $150 million.
According to the SEC, Musk’s late disclosure allowed him to purchase additional shares at lower prices, benefiting financially from the delay. The commission is seeking the return of these gains, along with a civil penalty and other sanctions.
Musk’s legal team has dismissed the lawsuit as a “sham,” asserting that the SEC’s actions are politically motivated. They argue that the commission is unable to invalidate Musk’s actions.
This legal action adds to the ongoing tensions between Musk and the SEC, which have been marked by previous disputes, including a 2018 lawsuit over misleading tweets about taking Tesla private.