- The Securities and Exchange Commission has filed suit against Elon Musk.
- The new suit alleges Musk violated securities law.
- It’s not the first time the Tesla leader has gone toe-to-toe with the SEC.
The Securities and Exchange Commission has filed suit against Elon Musk, alleging he violated securities law, according to a federal docket.
The complaint alleges Musk “failed to timely file with the SEC a beneficial ownership report” disclosing his purchase of Twitter shares before he announced his ownership of the company.
“As a result, Musk was able to continue purchasing shares at artificially low prices, allowing him to underpay by at least $150 million for shares he purchased after his beneficial ownership report was due,” the complaint reads.
This isn’t the first time the SEC has sued Musk. A 2018 complaint from the commission stemmed from CEO Elon Musk’s “funding secured” tweet, which eventually resulted in a settlement under which Tesla and Musk both paid fines of $20 million.
“Today’s action is an admission by the SEC that the they cannot bring an actual case — because Mr. Musk has done nothing wrong and Everyone sees this sham for what it is,” said Musk’s attorney Alex Spiro. “As the SEC retreats and leaves office — the SEC’s multi-year campaign of harassment against Mr. Musk culminated in the filing of a single-count ticky tak complaint against Mr. Musk under Section 13(d) for an alleged administrative failure to file a single form — an offense that, even if proven, carries a nominal penalty.”
The SEC has not responded to BI’s request for comment.
This story is developing. Please check back for updates.
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