SEC Investigates Musk for Delay in Disclosing Twitter Stock Buy

JUL 21 2022·Updated DEC 24 2022

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The Facts

The Securities and Exchange Commission (SEC) is reportedly investigating Elon Musk over his delayed disclosure of his large stake in Twitter.
Business Insider
Musk was reportedly 11 days overdue in disclosing his purchase of $2.67B of Twitter stock between Jan. and Apr. By delaying his disclosure until Apr 4, he potentially earned upwards of $156M in stock value.
Business Insider
He continued to purchase Twitter shares before publicly disclosing his eventual 9.2% stake in the company. The share price then rose by approximately 27% to $49.97 in a single day.
Forbes
This comes after a Twitter shareholder sued Musk last month, claiming that his delayed reporting allowed him to buy more shares at a lower price, cheating shareholders who sold in the interim.
Forbes
Last week, it was also reported that the Federal Trade Commission (FTC) is reviewing Musk's $44B deal with Twitter, creating a deadline for a possible antitrust review.
FOX News
On Fri., Musk announced that his purchase of Twitter is "temporarily on hold," but that he remains committed to the acquisition.
ITN

Sources Split

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CENTER

RIGHT

ESTAB
CRIT

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ESTAB

The Spin

Narrative A

While Musk wasn't even close to meeting the filing deadline and the SEC has a strong case against him, there is little it can do to faze someone with that much money. Whatever the outcome, it will very likely amount to nothing more than a bee sting; the investigation is ultimately pointless.

Slate

Narrative B

Musk has a history of disregarding SEC regulations, and then turning the tables and accusing the agency of subjecting him to unfounded investigations. Musk's latest stunt potentially netted him millions at the cost of other investors. He must be held accountable.

Vanity Fair