A regulator has alleged Elon Musk bought shares at artificially low prices. Photo / Getty Images
The United States Securities and Exchange Commission has sued Elon Musk, arguing that his purchase of Twitter shares in 2022 was carried out with violations, the regulator said in a filing.
“Defendant Elon Musk failed to timely file with the Securities and Exchange Commission [SEC] a beneficial ownership report
disclosing his acquisition of more than 5% of the outstanding shares of Twitter’s common stock in March 2022, in violation of the federal securities laws,” the agency said in a court filing.
According to the SEC, the omission enabled Musk, the world’s richest man and a close ally of President-elect Donald Trump, to continue purchasing shares at “artificially low prices, allowing him to underpay by at least [US]$150 million [$267.8m] for shares he purchased after his beneficial ownership report was due.”
Musk’s role at the social network has been marked by numerous controversies and led to various legal actions on the part of investors, former employees and companies that had contracts with Twitter, now called X.
