US sues Musk for failing to disclose Twitter stock holdings to buy platform at ‘artificially low prices’

15 January 2025, 02:06 | Updated: 15 January 2025, 02:07

Elon Musk is being sued for failing to disclose his purchase of Twitter stocks before buying the company in 2022, which ‘allowed him to underpay’ by at least $150m (£123m).
Elon Musk is being sued for failing to disclose his purchase of Twitter stocks before buying the company in 2022, which ‘allowed him to underpay’ by at least $150m (£123m). Picture: Getty

By Josef Al Shemary

Elon Musk is being sued for failing to disclose his purchase of Twitter stocks before buying the company in 2022, which ‘allowed him to underpay’ by at least $150m (£123m).

Listen to this article

Loading audio...

The world’s richest man started amassing Twitter shares in early 2022, and by March of that year, he owned more than 5%.

The US Securities and Exchange Commission (SEC) has now sued Musk, saying he failed to disclose his ownership of the stocks in a timely manner before buying the social media site in October 2022.

As a result, the SEC alleges, Musk was able to underpay "by at least 150 million dollars" (£123 million) for shares he bought, after he should have disclosed his ownership of the shares.

The SEC says he failed to disclose his holdings until April 4 2022, 11 days after the deadline, by which point he already owned more than 9% of Twitter’s shares.

Read more: 'The problem is men': Humza Yousaf accuses Elon Musk of 'inflaming racial tensions' with talk of grooming gangs

Read more: 'There is a deal to be done' between Trump, Musk and the UK, former Bank of England Chief Economist tells LBC

During the period that he hadn’t disclosed his purchase, Musk bought more than $500m in additional shares, which he was allegedly able to buy from the “unsuspecting public at artificially low prices”.

Twitter's share price rose more than 27% following his disclosure, the SEC said.

Commenting on a post referencing the lawsuit on X, Musk called the SEC a “totally broken organisation”.

“They spend their time on shit like this when there are so many actual crimes that go unpunished,” the billionaire said.

Alex Spiro, the lawyer representing Musk, reportedly said that his client "has done nothing wrong and everyone sees this sham for what it is".

Elon Musk has 'split apart' British politics

After Musk signed a deal to buy Twitter in April of 2022, he tried to back out of it, leading the company to sue him to force him to go through with the acquisition.

The SEC said that in April 2022, it authorised an investigation into whether any securities laws were broken in connection with the purchases of Twitter stock and Musk's statements and SEC filings related to the company.

Before it filed the lawsuit, the SEC went to court in an attempt to compel Mr Musk to testify as part of an investigation into his purchase of Twitter.

The SEC's chairman Gary Gensler plans to step down from his post on January 20 and it is not clear if the new administration will continue the lawsuit.

More Latest News

See more More Latest News

London, England. 24th May 2025. Pixie Lott wears a tshirt gifted by a fan as she presents new single 'Somebody's daughter' to the Foodie Festival audience. Cristina Massei/Alamy Live News

Pixie Lott reveals she's pregnant with second child on stage at festival

The Ukrainian leader celebrated the attack in Russia.

'Brilliant result': Zelenskyy celebrates Ukraine's attack on 40 'enemy bombers' in Russia that caused '$7bn' damage

The Royal Terrace Pier Gravesend Kent UK

Man describes rescuing 'screaming' boy from Thames after body recovered in search for missing girl

Yates on the podium, wearing the pink jersey of the race overall leader, celebrates after winning the 21th stage of the Giro d'Italia 2025. Sport - cycling. (Photo by Fabio Ferrari/LaPresse) Credit: LaPresse/Alamy Live News

Britain's Simon Yates wins first Giro d'Italia title in Rome

IDF Spokesperson BG Effie Defrin features in a video posted to X, captioned: "I visited the area of one of the GHF humanitarian aid distribution centers to set the record straight."

IDF denies responsibility after reports of 31 dead in Israeli attack near aid site

Climate activist Greta Thunberg with other activists from a human rights organization meets with journalists in Catania, Italy, Sunday, June 1, 2025, ahead of their departure for the Mideast.

'We have to keep trying': Greta Thunberg sets sail on journey to bring aid relief to Gaza as activist is joined by 11 others

Wiltshire Police confirmed nine people had sustained injuries and were taken to hospital.

Boat on River Thames 'explodes' with nine people injured 'including baby' and transferred to hospital after blaze

British surgeon Dr. Victoria Rose describes the catastrophic scene at Nasser Medical Complex

'Absolute carnage': British doctor describes horror in Gaza hospital after Israel 'opens fire' on aid centre

Sam was driving on the A34 near Manchester on Monday when his car suddenly left the road.

Race Across the World contestant Sam Gardiner, 24, dies in car crash as family pay tribute to his 'joy and energy'

Russia's Ministry of Defence acknowledged the strikes on airfields across five regions earlier today.

Ukraine targets more than 40 'enemy bombers' deep inside Russia with drones 'hidden' in special containers, source says

Firefighters with breathing apparatus and a ladder truck work at the Marienkrankenhaus hospital in Hamburg's Hohenfelde district of Hamburg.

Three dead, more than thirty-five injured in fire in geriatric ward of German hospital

An investigation has found trending mental health TikTok videos are spreading misinformation about mental health

'Feeling anxious? Eat an orange in the shower': Over half of top 100 Tik Tok mental health advice videos contain misinformation

Police warning to uber drivers after 'drunk passengers' found abandoned on dark motorway

Police warning to taxi drivers after 'drunk passengers' abandoned on motorway after being sick in Uber

Russian drone hits residential building in Belozersk

40 Russian bomber planes struck as Ukraine claims to have conducted drone attack

The awards were hosted at the Hackney Empire in London

Chaos at British Soap Awards after bomb threat prompts emergency evacuation

Berlin, Deutschland

Zelensky confirms Ukraine to take part in upcoming peace talks with Russia in Istanbul