by Eric Lendrum
On Tuesday, the Securities and Exchange Commission (SEC) filed a lawsuit against Elon Musk, the owner of Tesla, SpaceX, and the social media platform X (formerly known as Twitter), over his alleged failure to disclose his purchase of Twitter stock in 2022.
As reported by Just The News, the alleged purchase of stock by Musk led to him underpaying Twitter investors at the time of his buyout of the company in October of 2022. The lawsuit claims that this action meant Musk was able to buy stocks at “artificially low prices.”
“In total, Musk underpaid Twitter investors by more than $150 million for his purchases of Twitter common stock during this period,” the SEC claimed. “Investors who sold Twitter common stock during this period did so at artificially low prices and thus suffered substantial economic harm.”
In response, one of Musk’s attorneys, Alex Spiro, released a statement defending Musk and maintaining his innocence, saying that the SEC had chosen to file a civil complaint because it could never bring an “actual case” against the billionaire.
Musk, the world’s wealthiest man, purchased Twitter primarily due to his belief that the platform had become increasingly left-wing and censorious of dissenting opinions. He vowed to turn the platform into a more pro-free speech website, reversing numerous bans and censorship of previous terms and words. Following his acquisition, he rebranded the platform as “X.”
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Eric Lendrum reports for American Greatness.
Background Photo “SEC Building” by AgnosticPreachersKid. CC BY-SA 3.0.
