Musk Faces SEC Scrutiny Over Twitter Stock Purchases

Musk Faces SEC Scrutiny Over Twitter Stock Purchases

1 minute read
Updated 13 days ago

SEC's Demand and Musk's Response

The SEC has reportedly demanded either pay a penalty or face charges over his disclosures related to Twitter stock purchases, sparking a renewed investigation into Musk's companies.

Musk, through his lawyer, has labeled the SEC's demand as a "misguided scheme" and has questioned the motives behind the investigation, alleging it may be politically motivated.

Legal and Political Background

A lawsuit accuses Musk of delaying the disclosure of his Twitter stake, which allegedly harmed investors by preventing them from benefiting from the subsequent surge in Twitter's stock price.

Musk has a history of legal battles with the SEC, including a notable case in 2018 over tweets about taking Tesla private, which resulted in a $20 million settlement for each Musk and Tesla.
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