Elon Musk has not been able to get rid of a lawsuit from the US Securities and Exchange Commission in connection with his share purchases when taking over Twitter in 2022.
02/04/2026, 04:2102/04/2026, 04:21
His lawyers argued that the SEC applied laws selectively. In addition, Musk’s lawyers said the lawsuit would attack his right to freedom of expression. However, the judge responsible saw no reason to dismiss the lawsuit.
The Securities and Exchange Commission’s lawsuit against Elon Musk remains.Image: AP
The SEC (Securities and Exchange Commission) accuses Musk of not disclosing in a timely manner that his shareholding exceeded the five percent mark when purchasing Twitter shares. This meant he was able to buy more shares cheaper. After the acquisition, he converted Twitter into his online platform X.
SEC: $150 million saved by violating rules
The agency analyzed Musk’s purchases and concluded that he got off more than $150 million cheaper as a result of the late mandatory disclosure. However, the shareholders who sold their shares to him during this time would have suffered financial damage. The SEC is demanding that Musk repay the sum – plus an additional penalty.
The tech billionaire began buying Twitter shares on the market at the beginning of 2022. The SEC points out in the complaint that its shareholding reached five percent on March 14, 2022. According to US rules, he would have had to make this public within ten calendar days. However, Musk only announced on April 4th – eleven days too late – that he already held nine percent. The stock price then jumped 27 percent, the SEC highlighted.
Musk spent a total of around $44 billion on the purchase of Twitter, which was completed in October 2022. For the majority of the sum, he sold his shares in the electric car manufacturer Tesla, which he runs. Musk also took out loans worth around twelve billion dollars. (sda/dpa)