• The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, alleging a delay in disclosing his substantial Twitter stake.
• Musk's belated disclosure is said to have allowed him to underpay for shares, resulting in a financial advantage of at least $150 million.
• The legal action heightens tensions between Musk and the SEC, especially as political changes loom with the impending shift in SEC leadership.

The Securities and Exchange Commission (SEC) has launched a lawsuit against Elon Musk, accusing the billionaire of delaying the disclosure of his ownership stake in Twitter, now rebranded as X, during early 2022. According to the complaint, filed in Washington federal court, Musk began acquiring Twitter shares in early March 2022, reaching beyond the legally required 5% ownership threshold without timely disclosure as mandated by federal securities laws. The SEC claims Musk's late filing allowed him to continue purchasing shares at a lower price, allowing him to underpay by at least $150 million. The SEC asserts that Musk failed to report his stake by the deadline of March 24, thus limiting transparency for the investing public.

The case has garnered attention as it unfolds just before a significant transition in SEC leadership, with current chair Gary Gensler set to step down soon, raising questions about the future of the lawsuit. Musk, who has previously clashed with the SEC over various issues, characterized the lawsuit as a "sham," arguing that it reflects the agency's inability to present a legitimate case against him. His attorney, Alex Spiro, claimed that the SEC's action is a culmination of a "multi-year campaign of harassment" against Musk, pointing to what he labels an insignificant administrative error.

Musk's legal troubles with the SEC date back to their earlier interactions, including fines related to his tweets about Tesla and allegations of misleading statements about taking the company private. This latest lawsuit is positioned in the context of Musk's upcoming influence in the political domain as he becomes an advisor to the incoming Trump administration, potentially impacting SEC operations and policies.

This lawsuit is not only significant for Musk but also for the broader implications it carries for investor rights and regulatory oversight in the realm of major corporate acquisitions. [source: IndiaTimes] [source: SCMP] [source: Newsweek] [source: Salon] [source: IndiaTimes]