SEC Queries Elon Musk For Disclosing Twitter Deal Late
The billionaire is under the US Securities and Exchange Commission scrutiny.
The SEC is scrutinizing Elon Musk’s disclosure of his stake in Twitter. In a letter sent last month, the SEC told Musk that he “does not appear” to have disclosed his acquisition of Twitter shares within the agency’s required 10-day window.
The agency also suggested that Musk likely used the wrong form when he eventually disclosed his stake, using a document that wasn’t meant for someone who was hoping to make changes at the company being bought into.
Reports have started to trickle out that the SEC was looking into Musk’s disclosure, but this is the first public indication of their inquiry. The letter, filed April 4th but just now made public, requests clarifications from Musk on why he used a form meant for passive investors and whether or not the agency is wrong about his filing coming in late.
A lot has happened in the nearly two months since this letter was sent. Musk made an offer and subsequent agreement to purchase all of Twitter, he then decided against joining Twitter’s board, we have had several verbal reassurances from Musk and now conclude that any uncertainty about his intentions must have been resolved by now.
The SEC is threatening to sue Elon Musk for anti-competitive behavior after he tweeted asking short-sellers to stop betting against Tesla. Although the settlement he reached with the SEC keeps the agency’s oversight of his Twitter activity, this will be another showdown for Elon Musk.