Elon Musk Faces Lawsuit Over Twitter Acquisition
What Did Musk Do Wrong?
According to the SEC, Musk started buying Twitter shares in early 2022. By March 2022, he owned more than 5% of Twitter's shares. When this happens, the law says Musk must tell the SEC within 10 days.
But Musk didn't do that. He waited 11 days to tell the SEC that he owned more than 5% of Twitter's shares. This was on April 4, 2022.
Why Is the SEC Suing Musk?
The SEC says Musk broke the rules by not telling them on time. Because of this, Musk was able to buy more Twitter shares at a lower price. The SEC says Musk saved at least $150 million by doing this.
What Does Musk's Lawyer Say?
Musk's lawyer, Alex Spiro, says Musk did nothing wrong. He calls the lawsuit a "sham". Spiro says the SEC is just trying to harass Musk.
What Happens Next?
The SEC wants Musk to pay back the money he saved by breaking the rules. They also want to fine him. But it's not clear if the lawsuit will continue. The SEC's chairman, Gary Gensler, is leaving his job on January 20. The new administration might decide to drop the lawsuit.
