SEC sues Elon Musk over alleged failure to disclose purchase of Twitter stock

“In total, Musk underpaid Twitter investors by more than $150 million for his purchases of Twitter common stock during this period,” the SEC said in a complaint reported by Politico. “Investors who sold Twitter common stock during this period did so at artificially low prices and thus suffered substantial economic harm.”

By Misty Severi

Published: January 14, 2025 7:06pm

Updated: January 14, 2025 7:25pm

The Securities and Exchange Commission (SEC) on Tuesday night sued X owner and Tesla CEO Elon Musk for allegedly failing to properly disclose that he purchased Twitter stock in 2022, prior to purchasing the company, thereby allegedly underpaying Twitter investors.

The agency claimed that Musk's alleged failure benefited him because it meant he snatched up shares of the company at “artificially low prices," according to Politico.

“In total, Musk underpaid Twitter investors by more than $150 million for his purchases of Twitter common stock during this period,” the SEC said in the complaint. “Investors who sold Twitter common stock during this period did so at artificially low prices and thus suffered substantial economic harm.”

Musk attorney Alex Spiro maintained that his client has not done anything wrong, and that the civil complaint was because the SEC "knew" it could not bring an "actual case" against Musk.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.