August 15, 2022
Elon Musk’s Delay in Disclosure of Twitter Stake Says SEC Investigation Has Intensified

The Wall Street Journal reported on Wednesday, citing people familiar with the matter, that US regulators are investigating a delay in the disclosure of its large stake in Twitter last month.

The report said that Musk disclosed a 9.2 percent stake in Twitter to the US Securities and Exchange Commission (SEC) on April 4, at least 10 days since exceeding the 5 percent threshold to disclose shareholding. delay of.

An investor crossing a 5 percent stake must file a form with the SEC within 10 days. This serves as an early signal to stakeholders that a large investor may be trying to take control of the company.

The SEC declined to comment on the report and Tesla’s top boss did not immediately respond to a Reuters request for comment.

In addition to the delay, Musk’s April 4 filing also painted his stake as dormant, meaning he did not plan to take over Twitter or affect its management or business.

The next day, however, he was offered a position on Twitter’s board, and a few weeks later, the world’s richest man struck a $44 billion (about Rs 3,41,345 crore) deal to buy the social media giant. .

Known for his candid Twitter posts, Musk has a long history of skirmishes with the SEC.

Recently, a US judge reprimanded him for requiring him to monitor his Tesla tweets to try to avoid a settlement with the SEC.

In April, The Information reported that the Federal Trade Commission was investigating whether Musk violated a law that requires companies and individuals to report certain large transactions to antitrust-enforcement agencies.

© Thomson Reuters 2022

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