SEC sues Elon Musk, alleging failure to properly disclose Twitter ownership

The SEC filed a lawsuit against Elon Musk, CEO of Tesla and SpaceX, alleging securities fraud in 2022 for not disclosing his active stake in Twitter, allowing him to buy shares at lower prices. Musk acquired Twitter for $44 billion in 2022, renamed it X, and failed to disclose his ownership exceeding 5%, resulting in underpayment by $150 million. The SEC investigated Musk for securities fraud related to Twitter disclosures and pressured him to settle or face charges within 48 hours.

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