SEC sues Elon Musk for allegedly failing to disclose Twitter acquisition on time

SEC sues Musk for late Twitter disclosure, alleging $150M savings.

: The SEC has filed a lawsuit against Elon Musk, accusing him of violating securities law by failing to disclose his 5% ownership of Twitter on time. Musk allegedly delayed disclosure, allowing him to increase his stake to 9% and saving over $150 million. This lawsuit surfaces during SEC Chairman Gary Gensler's final week, with a potential friendlier commissioner approaching.

The SEC has initiated a lawsuit against Elon Musk over claims he violated securities law by not disclosing his 5% ownership stake in Twitter promptly, now known as X. It is alleged that he delayed this disclosure to increase his holdings to 9%, resulting in a savings of more than $150 million due to the increased stock value.

This legal move coincides with Gary Gensler's final week as SEC chairman before his departure on January 20. The suit comes after a string of disputes between Musk and the SEC, including recent mockery of a settlement offer by Musk.

Replacing Gensler, Trump-nominated Paul Atkins may introduce a friendlier environment for Musk. As speculation grows, a federal court will ultimately determine the merits of the SEC's claims and any potential fines.