"The SEC alleged that Musk bought more than 5 percent of Twitter shares without disclosing his position to the public within 10 days, as securities laws required."
"By keeping the transactions private until 11 days after he was required to disclose them, Musk saved $150 million on subsequent purchases of Twitter stock."
"When Musk finally disclosed that he had acquired 9 percent of Twitter's stock, the company's shares jumped by 27 percent, the SEC said in its complaint."
"Musk's purchases of Twitter stock and later the whole company have triggered a series of legal fights, including a shareholder lawsuit that forced him to go through with the deal."
Elon Musk settled with the SEC for $1.5 million due to allegations of failing to disclose his Twitter share purchases in a timely manner. The SEC claimed Musk's late disclosure allowed him to save $150 million by avoiding a price increase in Twitter shares. Musk acquired 9 percent of Twitter stock, leading to a 27 percent jump in share price upon announcement. The settlement does not include an admission of wrongdoing and is pending court approval. Musk's acquisition of Twitter has led to multiple legal disputes.
Read at The Washington Post
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