Musk Sued For Financial Transparency Violations In Twitter Purchase Elon Musk has been sued for failing to disclose his initial share purchase when he bought Twitter (now called X). The US financial regulator, the Securities and Exchange Commission (SEC), recently filed a lawsuit in federal court in Washington, DC, alleging that Musk violated securities laws by failing to promptly disclose his initial share purchase of 5 per cent.
According to the SEC, Musk played a role in artificially lowering the share price by underpaying $150 million when he bought Twitter shares.
Musk bought Twitter for $44 billion in 2022. He had already purchased a 5 per cent stake for $500 million before buying Twitter. The SEC claims that Musk missed the deadline to disclose the share purchase and delayed the purchase process by 11 days.
Musk’s legal team has said there was no wrongdoing in the Twitter purchase process and that the SEC’s allegations are false.
Musk changed the name of Twitter to ‘X’ after buying it. This issue has now raised questions about Musk’s business practices and financial transparency.