SEC sues Elon Musk, alleging he failed to disclose Twitter purchases
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The Securities and Exchange Commission sued Elon Musk on Tuesday, alleging he failed to properly disclose his purchase of Twitter shares before eventually buying the company.
Why it matters: The suit comes just days before President-elect Trump's inauguration as president, amid uncertainty over what legal scrutiny "first buddy" Musk might face in the new administration.
Zoom out: The SEC, in a suit filed in federal court in Washington, alleges that Musk did not file disclosures in a timely manner in March 2022 as he was acquiring shares of Twitter, now known as X.
Because investors did not know the size of his holdings, that allegedly let him buy stock at "artificially low prices," the SEC said, underpaying by an estimated $150 million.
What they're saying: "Today's action is an admission by the SEC that the they cannot bring an actual case — because Mr. Musk has done nothing wrong and everyone sees this sham for what it is," his attorney Alex Spiro said in a statement.
Spiro went on to call the case a "single-count ticky tak complaint."
Zoom in: The complaint requests an order forcing Musk to give up his "unjust" profits and pay unspecified civil penalties.
Flashback: Musk said he was joining Twitter's board in April 2022, after he'd already purchased 9% of the company's stock.
He later backed out of the board seat and acquired the company outright.
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