SEC takes legal action against Musk for Twitter shares
After a delay in disclosing Twitter’s stake, alleging securities law violations.

The US Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing him of delaying the disclosure of his 2022 Twitter stake, which violated federal securities laws. According to the complaint, Musk waited 11 days beyond the required 10-day window to reveal his 5% ownership of Twitter, enabling him to purchase over $500 million worth of shares at lower prices before disclosing his 9.2% stake on April 4, 2022. Twitter’s stock price surged by more than 27% following the announcement.
The SEC seeks civil penalties and a repayment of profits it claims Musk gained unfairly. Musk’s attorney, Alex Spiro, dismissed the lawsuit as a ‘sham,’ arguing it stems from a minor administrative oversight. Musk has previously clashed with the SEC, including a 2018 settlement over misleading tweets about taking Tesla private, which resulted in a $20 million fine and other conditions.
This lawsuit is the latest in a series of legal challenges Musk faces over his $44 billion purchase of Twitter, now rebranded as X. Musk, who is worth $417 billion, according to Forbes, has also been sued by former Twitter shareholders in Manhattan federal court for the delayed disclosure, which they claim caused them financial harm. The SEC’s action comes just days before Chair Gary Gensler’s scheduled departure, marking another chapter in Musk’s contentious history with the regulatory body.