Elon Musk avoids sanctions in SEC probe
A federal judge has dismissed the SEC’s attempt to sanction Elon Musk, concluding that his late testimony and repayment of travel costs rendered further penalties unnecessary.
A federal judge has denied the US Securities and Exchange Commission’s bid to sanction Elon Musk over missed testimony in its investigation of his $44B Twitter purchase. The judge concluded that sanctions were unnecessary after Musk testified in October and paid $2,923 to cover the SEC’s travel expenses.
The US SEC is probing whether Musk delayed disclosing his stock purchases in early 2022, potentially enabling him to buy Twitter shares at a lower price before revealing his significant stake. Critics argue this delay might have given Musk an unfair financial advantage leading up to his eventual takeover.
Musk, currently the world’s richest person, attributed the delay to a misunderstanding of SEC rules. The billionaire, whose ventures include Tesla and SpaceX, has had prior conflicts with the SEC, including a 2018 settlement over his tweets about taking Tesla private.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.