SEC sues Elon Musk, alleging failure to properly disclose Twitter ownership

The SEC has sued Elon Musk for alleged securities fraud. It claims he delayed disclosing his 5% ownership in Twitter (now X) in 2022, allowing him to buy shares at artificially low prices.

During the delay, Musk reportedly saved at least $150 million by purchasing shares worth over $500 million. The disclosure made 11 days late on April 4, 2022, led to a 27% surge in Twitter’s stock price.

Musk’s lawyer dismissed the lawsuit as baseless and part of a long-standing harassment campaign. The SEC seeks a jury trial, disgorgement of alleged unjust gains, and civil penalties.

Musk also faces a separate lawsuit from the Oklahoma Firefighters Pension Fund over similar claims. This comes as Musk is poised to lead a regulatory advisory group under President-elect Trump.