Technology

Feds investigating Musk’s late disclosure of Twitter stake: report

Elon Musk, wearing a black suit jacket, white collared shirt and black tie, squints upward
AP Photo/Matt Rourke
Elon Musk walks from the justice center in Wilmington, Del., Monday, July 12, 2021.

The U.S. Securities and Exchange Commission (SEC) is reportedly investigating Elon Musk’s delayed reporting after he acquired a sizable stake in Twitter.

The Wall Street Journal reported the SEC is probing Musk for failing to notify the agency within ten days after he acquired a five percent stake in Twitter on March 24.

The reporting trigger at 5 percent is meant to alert shareholders that a significant investor may influence the company.

The Tesla and SpaceX CEO was supposed to notify the SEC by April 1 but did not do so until April 4.

Twitter’s value jumped once Musk’s 9.2 percent stake did become public, making him the social media company’s largest individual shareholder. He has since purchased the company for $44 billion.

Former Twitter shareholders sued Musk for failing to notify the SEC in time, alleging they missed out on a resulting share price increase after his stake in the company was made clear.

Tags Elon Musk Elon Musk Securities and Exchange Commission Securities and Exchange Commission Twitter Twitter

The Hill has removed its comment section, as there are many other forums for readers to participate in the conversation. We invite you to join the discussion on Facebook and Twitter.

Most Popular

Load more

Video

See all Video