Elon Musk reportedly saved $150 million by not reporting massive stock buybacks to the SEC in 2022.
The American Financial Markets Regulatory Authority (SEC) filed a complaint on Tuesday against Elon Musk for not having disclosed “in a timely manner” a buyback of Twitter shares in 2022, before taking control of the platform.
“Elon Musk failed to timely report to the SEC … his acquisition of more than 5% of Twitter’s outstanding common stock in March 2022,” the SEC said in its complaint, “which allowed him to pay an artificially low price.
Still according to the American stock market policeman, this omission would have allowed the boss of Tesla and SpaceX “not to pay at least 150 million dollars for shares that he purchased after the deadline for his declaration of beneficial ownership” of Twitter ( became X).
The SEC had already filed a complaint in October 2024 against Elon Musk to force him to testify as part of an investigation into the acquisition of Twitter, one of the many legal proceedings linked to this controversial takeover, and had indicated that -he had not shown up for an audition whose date had already been moved several times.
A federal judge then ordered the billionaire to explain himself to the SEC in February 2024.
A shareholder complaint
Elon Musk’s lawyer, Alex Spiro, assured that his client’s testimony had already been collected “several times as part of this misguided investigation – enough is enough.”
The prevarications and attacks during the months leading up to the takeover, as well as the decisions of the new owner thereafter, sparked numerous controversies, and led to various legal actions, from investors, former employees and companies that had contracts with Twitter.
Shareholders had already filed a complaint against Elon Musk, accusing him of having disclosed his 5% stake in Twitter too late, after the deadline set by the SEC.
Contacted by AFP, Alex Spiro did not immediately respond.
Swiss
