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Bret Hartman
In a federal court lawsuit in the District of Columbia, the SEC alleged that Musk did not promptly disclose that his Twitter ownership surpassed 5% in March 2022. The regulation, referred to as 13-D, mandates that any ownership of 5% or greater in a public firm be reported within 10 days to inform other investors that a significant shareholder might attempt to sway or acquire the company. Musk, nonetheless, completed this after 11 days following the April 4, 2022 deadline, at which point his ownership hit 9.2%. The regulator indicated that Twitter's stock price increased by over 27% following that event.
Consequently, the SEC contends that Musk hurt investors who sold securities for less than their value. The regulator stated that the postponement enabled Musk to conserve over $150 million. In October 2022, the billionaire acquired complete ownership of Twitter, purchasing all shares for $44 billion.
In the legal action, the regulator seeks to compel the billionaire to repay the money he "saved" and to impose a penalty on him.
source: wsj.com
Consequently, the SEC contends that Musk hurt investors who sold securities for less than their value. The regulator stated that the postponement enabled Musk to conserve over $150 million. In October 2022, the billionaire acquired complete ownership of Twitter, purchasing all shares for $44 billion.
In the legal action, the regulator seeks to compel the billionaire to repay the money he "saved" and to impose a penalty on him.
source: wsj.com
