Elon Musk to Face Court for Legal Violations

World

The U.S. Securities and Exchange Commission (S.E.C.) has sued Elon Musk for securities violations related to Twitter. According to the S.E.C.'s lawsuit, Musk failed to disclose his stake in Twitter in a timely manner while purchasing shares.

Elon Musk to Face Court for Legal Violations
This allowed him to buy shares at artificially low prices, saving at least $150 million, the lawsuit alleges. It states that Musk delayed filing the disclosure for 11 days.

In recent weeks, Musk openly criticized the S.E.C. on the X platform, making sarcastic remarks about the possibility of a lawsuit. His lawyer, Alex Spiro, dismissed the latest lawsuit, claiming it showed the S.E.C.'s inability to bring a valid case as Musk had done nothing wrong.

This marks the third legal battle between the S.E.C. and Musk. The first lawsuit arose from Musk's social media statements about Tesla. The S.E.C. has also faced difficulties compelling Musk to testify.

The case underscores that Musk's actions during the Twitter acquisition violated market disclosure rules. His purchase of Twitter and its rebranding as X have been the subject of multiple federal investigations.

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