January 15th 2025.
As the world eagerly awaits the inauguration of Donald Trump as the 47th President of the United States, the Securities and Exchange Commission (SEC) has taken legal action against Elon Musk, one of Trump's closest allies. The SEC has accused the tech mogul of violating federal securities law by not disclosing his 5% ownership stake in Twitter in a timely manner.
According to reports, the complaint was filed in a federal court in Washington, DC, and alleges that Musk intentionally delayed disclosing his acquisition of Twitter in order to secure a larger stake at a discounted price. This news comes at a time when the current Chairman of the SEC, Gary Gensler, is set to step down on January 20th – the same day that Trump takes over as President.
In the complaint, the SEC states that Musk purchased more than 5% of Twitter on March 24th, 2022 and was obligated to file a beneficial ownership report with the commission. However, the report was not filed until April 4th, 2022. During this period of delayed disclosure, Musk allegedly increased his stake in Twitter from 5% to 9%.
Musk's lawyers have argued that the SEC's case against their client lacks substance and is merely an attempt to harass him. They claim that the commission's "multi-year campaign" against Musk has culminated in a weak and insignificant complaint. As the SEC transitions to new leadership, with Paul Atkins being nominated as the new chief, it is thought that the legal action against Musk could be politically motivated.
In October 2022, Musk made headlines when he purchased Twitter for a staggering $44 billion. This acquisition has now become the center of a legal battle between the SEC and one of the world's wealthiest individuals. The outcome of this lawsuit remains to be seen, but it is clear that the controversy surrounding Musk and his business dealings will continue to make waves in the media.
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