SexSex Commission Sues Elon Musk Over Security Law Violations
The Securities and Exchange Commission (SEC) has filed a lawsuit against Tesla CEO Elon Musk over alleged violations of securities law in connection with his stake in Twitter. According to the court filing, Musk failed to disclose a major purchase of Twitter shares, allowing him to build a stake of over 5% and purchase shares at a lower price, resulting in a saving of at least $150 million.
Musk, who took over Twitter in 2022 and rebranded it as X Corp, has been under investigation by the SEC over alleged securities fraud. The regulator is also examining his sales of Tesla stock to fund his Twitter buyout.
This is not the first time Musk has faced scrutiny from the SEC. He was previously sued in the late 2010s over his statements about taking Tesla private.
SEC Chairman Gary Gensler has announced that he will step down from his position when the new administration takes office in January, and SEC Commissioner Paul Atkins has been nominated to replace him.
Musk responded to the lawsuit, calling the SEC a “totally broken organization” that focuses on trivial matters when there are more serious crimes being committed.
