Saturday, 10 May 2025
America Age
  • Trending
  • World
  • Politics
  • Opinion
  • Business
    • Economy
    • Real Estate
    • Money
    • Crypto & NFTs
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion / Beauty
    • Art & Books
    • Culture
  • Health
  • Sports
  • Entertainment
Font ResizerAa
America AgeAmerica Age
Search
  • Trending
  • World
  • Politics
  • Opinion
  • Business
    • Economy
    • Real Estate
    • Money
    • Crypto & NFTs
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion / Beauty
    • Art & Books
    • Culture
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 America Age. All Rights Reserved.
America Age > Blog > Tech / Science > The S.E.C. Sent a Letter to Musk About His Twitter Shares in April
Tech / Science

The S.E.C. Sent a Letter to Musk About His Twitter Shares in April

Enspirers | Editorial Board
Share
The S.E.C. Sent a Letter to Musk About His Twitter Shares in April
SHARE

The Securities and Exchange Commission revealed on Friday that it had begun looking into Elon Musk’s purchases of Twitter stock in early April and whether he properly disclosed his stake and his intentions for the social media company.

In a regulatory filing, the agency said it had approached Mr. Musk on April 4. At the time, Mr. Musk, who is the world’s richest man, had just become Twitter’s largest shareholder with a 9.2 percent stake in the company. Mr. Musk also filed a securities document that indicated he planned for the investment to be passive and did not intend to pursue control of the company.

Ten days later, Mr. Musk offered $54.20 a share to buy Twitter outright. Twitter later agreed to sell itself to Mr. Musk for roughly $44 billion; the transaction is expected to close in the next few months.

In a letter to Mr. Musk dated April 4, the S.E.C. questioned whether he had disclosed his stake at the right time. The law requires shareholders who buy more than 5 percent of a company’s shares to disclose their ownership within 10 days of reaching that threshold. In regulatory filings, Mr. Musk has said he crossed that threshold on March 14, but did not make his purchases public until April 4.

In its letter, the S.E.C. also questioned whether Mr. Musk was truly a “passive” investor, given that he had already publicly criticized Twitter’s content moderation policies and tweeted recommendations about how the social media company should be changed.

Filing as a “passive investor” while secretly planning to take over a company is “fraudulent,” some legal experts have said. Such cases are rarely prosecuted and are difficult to prove, they have added.

The S.E.C. declined to comment. Mr. Musk did not respond to a request for comment. A lawyer for Mr. Musk declined to comment.

The Federal Trade Commission is also looking into whether Mr. Musk violated disclosure requirements by failing to notify the agency of his sizable stake in Twitter. Investors typically must notify antitrust regulators of large share purchases to give government officials 30 days to review the transaction for competition violations.

Mr. Musk, who is also the chief executive of the electric car company Tesla and the rocket maker SpaceX, has previously tangled with the S.E.C. He faced an investigation from the regulator in 2018 when he announced on Twitter that he planned to take Tesla private and that he had secured financing for the deal.

The S.E.C. charged Mr. Musk with securities fraud because, it said, the transaction he referred to was uncertain and funding had not been locked down. Mr. Musk and Tesla settled for $40 million. Under the terms of his agreement with the regulator, Mr. Musk must run his tweets by a Tesla lawyer if they contain material statements about the carmaker. Last month, Mr. Musk tried to end the tweet approval arrangement in court, but a judge denied his request.

A shareholder lawsuit against Mr. Musk over his tweet claiming he planned to take Tesla private is ongoing. Mr. Musk also faces a lawsuit from Twitter shareholders over his delayed disclosure about his purchases of the social media company’s stock.

TAGGED:Antitrust Laws and Competition IssuesComputers and the InternetElectric and Hybrid VehiclesMusk, ElonRegulation and Deregulation of IndustrySecurities and Commodities ViolationsSecurities and Exchange CommissionSocial MediaThe Washington MailTwitter
Share This Article
Twitter Email Copy Link Print
Previous Article Live Updates: Russia Advances in Ukraine’s East as Civilian Toll Rises Live Updates: Russia Advances in Ukraine’s East as Civilian Toll Rises
Next Article Luis Díaz Is the Liverpool Star Who Never Should Have Made It Luis Díaz Is the Liverpool Star Who Never Should Have Made It

Your Trusted Source for Accurate and Timely Updates!

Our commitment to accuracy, impartiality, and delivering breaking news as it happens has earned us the trust of a vast audience. Stay ahead with real-time updates on the latest events, trends.
FacebookLike
TwitterFollow
InstagramFollow
LinkedInFollow
MediumFollow
QuoraFollow
- Advertisement -
Ad image

Popular Posts

Hans Zimmer Interrupts U.K. Concert To Show Ukrainian Pianist Fiercely Playing ‘Inception’ Song On Streets As Air Raid Sirens Sound

Oscar-winning composer Hans Zimmer stopped a concert at London’s O2 Arena this week to highlight…

By Enspirers | Editorial Board

Live updates | G-7 leaders vow to cut Russian oil imports

KYIV, Ukraine — Leaders from the Group of Seven developed democracies pledged Sunday to phasing…

By Enspirers | Editorial Board

Keir Starmer was as soon as my apprentice – and that is how I believe he may fare as prime minister | Geoffrey Robertson

What does Keir Starmer really stand for? Will our new prime minister grow to be…

By Enspirers | Editorial Board

‘Scary Film’ Actress Erica Ash Useless at 46 After Most cancers Battle

Actress Erica Ash -- well-known from one of many 'Scary Film' movies and "Survivor's Remorse"…

By Enspirers | Editorial Board

You Might Also Like

Save  with this limited-time provide on the Google Pixel Buds Professional 2
Tech / Science

Save $40 with this limited-time provide on the Google Pixel Buds Professional 2

By Enspirers | Editorial Board
You will quickly have the ability to verify your mail together with your iPhone
Tech / Science

You will quickly have the ability to verify your mail together with your iPhone

By Enspirers | Editorial Board
Our favourite budget-friendly health tracker simply obtained much more inexpensive
Tech / Science

Our favourite budget-friendly health tracker simply obtained much more inexpensive

By Enspirers | Editorial Board
‘Poker Face’s New York pop-up enables you to name ‘bull’ for a prize
Tech / Science

‘Poker Face’s New York pop-up enables you to name ‘bull’ for a prize

By Enspirers | Editorial Board
America Age
Facebook Twitter Youtube

About US


America Age: Your instant connection to breaking stories and live updates. Stay informed with our real-time coverage across politics, tech, entertainment, and more. Your reliable source for 24/7 news.

Company
  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement
Contact Us
  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability
Terms of Use
  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices
© 2024 America Age. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?