“For 11 days, Musk — the world’s richest man and a prominent backer of President-elect Donald Trump — allegedly failed to properly disclose that he had acquired a major stake in Twitter, the SEC said in a court filing in Washington. As a result, the agency said Musk benefited from “artificially low prices” as he snatched up shares in the company, which he eventually purchased for $44 billion and renamed X.
“In total, Musk underpaid Twitter investors by more than $150 million for his purchases of Twitter common stock during this period,” the SEC said in its complaint. “Investors who sold Twitter common stock during this period did so at artificially low prices and thus suffered substantial economic harm.””