SEC Sues Elon Musk Over Late Twitter Stake Disclosure
The SEC has taken legal action against Elon Musk, alleging he failed to timely disclose his Twitter stake, leading to potential investor harm.

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing the billionaire of not disclosing his ownership in Twitter (now known as X) in a timely manner back in 2022. The complaint, lodged in federal court in Washington, D.C., alleges that Musk contravened federal securities laws by delaying the disclosure of his acquisition of more than a 5% stake in the social media company by 11 days, beyond the SEC’s required 10-day window.
According to the SEC, this delay allowed Musk to amass additional shares at what they describe as “artificially low prices,” potentially underpaying by more than $150 million for his stake in the company. The lawsuit claims that Musk’s failure to disclose his significant ownership in Twitter led to a lack of transparency, which harmed other investors who sold their shares without the knowledge of his substantial involvement, causing economic harm.
Musk, who eventually acquired Twitter for $44 billion and renamed it X, has had a contentious history with the SEC, including previous fines and agreements related to his tweeting habits and Tesla stock disclosures. This latest legal battle comes at a pivotal time as SEC Chair Gary Gensler is set to step down, with Paul Atkins, a Trump nominee, expected to take over and possibly reassess many of Gensler’s policies.
The SEC’s action has sparked a variety of reactions, with some seeing it as a necessary enforcement of disclosure rules to protect investors, while others, including Musk’s supporters, view it as part of ongoing regulatory harassment against the entrepreneur. Musk’s legal team has already pushed back against the claims, with his attorney Alex Spiro decrying the lawsuit as a “ticky tak complaint” and an acknowledgment by the SEC of their inability to bring a substantive case against Musk.
As this legal skirmish unfolds, it remains to be seen how it will affect Musk’s relationship with regulatory bodies, his business interests, and the broader implications for corporate transparency and investor protection in high-profile takeovers. The case could also have significant repercussions on how disclosure requirements are viewed and enforced in the context of rapidly evolving tech acquisitions.