The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, the billionaire CEO of Tesla and owner of X (formerly Twitter), alleging violations of securities laws.
The SEC accuses Musk of failing to disclose his acquisition of a beneficial ownership stake in Twitter in early 2022 within the required timeframe. According to the Jan. 14 filing, Musk delayed his disclosure by 11 days, enabling him to purchase additional Twitter shares at lower prices, underpaying investors by at least $150 million. The SEC is seeking a jury trial, disgorgement of Musk’s alleged unjust enrichment, and a civil penalty.
The lawsuit was filed on Jan. 14, 2025, in a Washington, D.C., federal court. The events in question date back to March 2022, when Musk began acquiring over 5% of Twitter’s stock.
The legal action is being pursued in the United States, focusing on Musk’s transactions involving Twitter, now known as X.
The SEC claims Musk’s failure to disclose his stake within 10 days violated securities regulations and misled investors. Musk’s delay allegedly allowed him to continue buying shares before the market could react to the information, securing a financial advantage. The SEC is also under scrutiny as its leadership transitions, with Chair Gary Gensler stepping down on Jan. 20.
The SEC argues that Musk’s actions harmed investors by creating an unfair market environment. Musk responded on Jan. 15 via X, calling the SEC a “totally broken organization” and criticizing its focus on his case over what he claims are more pressing issues. His lawyer, Alex Spiro, labeled the lawsuit as harassment, asserting that Musk has done nothing wrong.
Musk acquired Twitter for $44 billion in April 2022, taking the company private and implementing controversial changes, including cutting misinformation content policies. This latest lawsuit adds to Musk’s legal battles as the SEC seeks to hold him accountable for his financial activities.