Beijing time on the evening of May 12th, according to reports, people familiar with the matter said today that the U.S. Securities and Exchange Commission (SEC) is investigating Tesla CEO Elon Musk (Elon Musk) because he announced the acquisition of Twitter. Bought a lot of Twitter stock, but didn’t disclose it in time.
According to the provisions of,Investors need to report promptly after buying more than 5% of a company’s stock, but Musk did not disclose this information to the SEC in a timely manner. It is reported that Musk is at least 10 days late.
Musk announced on April 4,He bought 73,486,938 shares of Twitter, accounting for 9.2% of the shares, becoming Twitter’s largest shareholder. Shares of Twitter soared nearly 25% after the news became public.
Musk began to buy Twitter stock on a large scale after January 28 this year. According to SEC rules, he was supposed to file the information with the SEC by March 24.
Musk may have saved $143 million (in later purchases) by not reporting his purchase of more than 5% of Twitter stock in time. That’s because if public investors had known Musk was buying Twitter stock, the stock might have risen, said Daniel Taylor, an accounting professor at the University of Pennsylvania.
On April 12, a Twitter shareholder filed a lawsuit against Musk, arguing that if he disclosed the information in a timely manner, investors would have reaps substantial gains between March 24 and April 4.
Musk offered to buy Twitter on April 14, and Twitter accepted his offer on April 25. The deal still needs to be approved by shareholders and regulators. Industry insiders said that even if the SEC filed a lawsuit against Musk, it was unlikely to disrupt the deal.
The SEC has not responded to a request for comment.
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