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Elon Musk Sued Over Stock Fraud Twitter

Elon Musk Sued Over Stock Fraud Twitter

HappyCoinNewsHappyCoinNews2025/01/16 10:44
By:HappyCoinNews

Against American billionaire Elon Musk filed a claim to court for fraud with shares of a company banned in Russia Twitter, whose social network was renamed X.

The US Securities and Exchange Commission (SEC) has accused Musk of market manipulation. According to officials, Elon began buying shares Twitter in early 2022 and within three months acquired more than 5% of the company's issued assets. Then on April 4, 11 days later than the scheduled deadline, the businessman publicly disclosed that he owned more than 9% of the social network's shares, causing a 27% increase in the company's stock price.

In total, Musk spent on assets up to March 24, 2022 Twitter $2,8 billion and thus became the largest shareholder of the company. However, by being late with the transfer of the report, he saved at least $150 million because he bought the company's assets at a reduced price. In this regard, investors who sold their securities to Elon suffered losses. Based on this, SEC employees are asking the court to oblige the entrepreneur to return the unfairly saved funds and pay a fine.

"The [SEC] is a completely useless organization. They waste their time on this kind of nonsense while so many real criminals get away with it," Musk wrote in response to the news of the lawsuit filed against him.

Elon's lawyer Alex Spiro predictably sided with his client and said that the businessman had done nothing wrong and had nothing to be ashamed of. Recall that the sale deal Twitter Musk was executed on October 26, 2022, after violations in which the businessman was caught. In July, Elon tried to back out of buying the company, but ended up paying $44 billion for the social network under the threat of litigation.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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