Frequent litigant essential to the financial health of the legal services industry, Elon "Pedo Guy" Musk, is being sued by the SEC for failing to disclose his active stake in Twitter and using that secrecy to acquire additional shares at an artificially low price.
Elon was quietly hoovering up shares of Twitter before the ketamine-induced, due-diligence-lacking acquisition of the social media giant was eagerly entered into. The SEC has been investigating the timeline of his share acquisition and determined Musk broke the law. It remains to be seen if this will move forward once Elon's new pet President takes office in a few days.
"On April 4, 2022, eleven days after a report was due, Musk finally publicly disclosed his beneficial ownership in a report with the SEC, disclosing that he had acquired over nine percent of Twitter's outstanding stock," the complaint says. "That day, Twitter's stock price increased more than 27% over its previous day's closing price."
The SEC alleges that Musk spent over $500 million purchasing more Twitter shares during the time between the required disclosure and the day of his actual filing. That enabled him to buy stock from the "unsuspecting public at artificially low prices," the complaint says. He "underpaid" Twitter shareholders by over $150 million during that period, according to the SEC.
In the complaint, the SEC is seeking a jury trial and asks that Musk be forced to "pay disgorgement of his unjust enrichment" as well as a civil penalty.
CNBC
Previously:
• In SEC fraud case, Elon Musk will pay $20 million, quit as Tesla chairman, and have a boss
• Eager to run to court with others, Elon keeps trying to dodge the SEC