SEC Files Lawsuit Against Elon Musk for Securities Law Violation

On the 14th (local time), according to Watcher Guru, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Elon Musk, CEO of Tesla, a few days ago for alleged violations of securities laws. This SEC lawsuit is reportedly related to Elon Musk's acquisition of shares in X (formerly Twitter).

The SEC filed a complaint in the Washington D.C. District Court, accusing Musk of engaging in securities fraud by failing to disclose his large-scale purchase of X shares and gaining undue profits. Specifically, the SEC claimed in the complaint filed in the Washington D.C. District Court that Musk delayed reporting this important information for more than 10 days and purchased shares at least $150 million lower than the financial gain ownership reporting deadline.

It is alleged that he intentionally concealed his interest in purchasing shares and Twitter to buy shares at a lower price.

Previously, in 2022, Musk acquired Twitter for $44 billion and changed its name to X the following year. Before the acquisition, he held more than 5% of Twitter shares, which legally required him to disclose his holdings within 10 days upon reaching this 5% threshold.

The SEC has demanded a jury trial and is also seeking fines and the return of undue profits.

Alex Spiro, Musk's attorney, stated, "Musk has done nothing wrong," and described the situation as "years of harassment." Musk also criticized the SEC on X, saying, "There are so many real crimes that go unpunished, yet they focus on this, a completely broken organization."