U.S Government Accused Elon Musk of Deceiving Twitter Investors

The US Securities and Exchange Commission via the U.S. government said in a lawsuit filed Elon Musk had defrauded Twitter shareholders of over $150 million by failing to disclose his increasing stake in the company while he prepared a takeover bid.

 

Elon Musk, the richest person in the world, has emerged as one of Donald Trump’s most ardent supporters and closest advisors.

The billionaire is accused in the agency’s complaint—which Musk’s attorney quickly refuted—of neglecting to disclose that he had acquired over 5% of the social media company’s stock in early 2022, a disclosure that would have increased the stock’s value.

The financial regulator claimed that Musk could make these purchases from the unwary public at artificially low prices because he neglected to disclose his beneficial ownership.

Investors who sold Twitter common stock did so at artificially low prices, causing them to sustain significant financial losses. The action is “an admission” that the SEC cannot file an “actual case,” according to Musk’s attorney Alex Spiro, since Musk “has done nothing wrong and everyone sees this sham for what it is.”

The regulator has been looking into Musk’s Twitter investment and has pressed him to explain why he failed to disclose his ownership.  He was asked to pay over $200 million to resolve claims that he had not disclosed his Twitter investment properly.

Although the SEC is requesting relief, Spiro stated that Musk is not being accused of intentionally misleading investors or acting willfully.

 

 

 

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments