SEC calls on Elon Musk over his late stake disclosure in Twitter Inc.

By Nikita Chaurasia  | Date: 2022-05-30

SEC calls on Elon Musk over his late stake disclosure in Twitter Inc.

The Securities and Exchange Commission (SEC) is reportedly investigating Tesla CEO Elon Musk's buyout of social media platform Twitter. The agency is probing a paperwork mix-up that shows Musk filing for the required documents in early April, which was not within 10 days of the acquisition.

The SEC has made the letter public and is asking Musk for the precise date of disclosure of his Twitter stake because he filed a form intended only for passive investors, which he later amended.

Sources claimed that the commission is looking into why Musk did not file a 13D form, which is for associated investors engaged in managerial & policy decisions, and instead chose a 13G form, which is for investors who strategize to maintain their shares silently.

It is worth noting that Musk was offered a board seat after his initial disclosure of a 9.2% stake in the company, which was immediately followed by him purchasing the social media platform for a whopping USD 44 billion to take it private.

Investors believe Elon Musk exploited the company's stock price and profited by neglecting to reveal his investment on time. Previously, Musk was in trouble with the SEC after the latter sued him for misrepresenting the facts of his USD 420 per share purchase of an electric car company.

While some experts believe that the economic implications of late filing would have no impact on the world's richest man, others believe that it could jeopardize his acquisition of Twitter. Speculations have it that the SEC has a strong case against Tesla's CEO, but it would be embarrassing if they stated that the transaction could not proceed because he lodged the incorrect form.

The SEC, which has previously expressed reluctance to take Tesla to court, would most likely simply advise him to comply with the rules. Despite the current situation, Tesla and Twitter shares rose 5.75% and 2.2%, respectively.

Source credit:

https://indianexpress.com/article/technology/mobile-tabs/u-s-sec-looking-into-musks-twitter-stake-purchase-7940643/

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More >>

More News By Nikita Chaurasia

Tata Tele Business Services to offer Microsoft Azure to Indian SMBs

Tata Tele Business Services to offer Microsoft Azure to Indian SMBs

By Nikita Chaurasia

Telecommunications service provider, TTBS (Tata Tele Business Services) has reportedly announced that it would help Indian SMBs (small and medium businesses) migrate their workloads to the cloud by providing Microsoft Azure (cloud computing services)...

Tatas in plans to acquire Bisleri in a deal worth USD 856 million

Tatas in plans to acquire Bisleri in a deal worth USD 856 million

By Nikita Chaurasia

India's fast-moving consumer goods company, Tata Consumer Products Ltd is reportedly all set to acquire drink company, Bisleri International in a deal worth USD 856 million (₹7000 crores), reported the packaged water makers chairman, Ramesh...

Ukio raises $28M to offer comfort to working professionals across Europe

Ukio raises $28M to offer comfort to working professionals across Europe

By Nikita Chaurasia

Ukio, an apartment rental agency in Barcelona, Spain, has reportedly raised $28 million (€27 million) in a Series A round of funding. Apparently, the cash injection consists of over $17.5 million (€17 million) in equity and more than $10...

Amazon’s AWS unveils 2nd infrastructure region in Hyderabad, India

Amazon’s AWS unveils 2nd infrastructure region in Hyderabad, India

By Nikita Chaurasia

IT service management company, Amazon Web Services, Inc. (AWS), has recently announced the unveiling of another leading AWS infrastructure region in India, the AWS Asia Pacific (Hyderabad) Region. Starting this week, the startups, developers, ente...

Beijing reports increase in COVID-19 cases after first death in six months

Beijing reports increase in COVID-19 cases after first death in six months

By Nikita Chaurasia

World's most populous country, China has recently reported the fatalities of three people in Beijing as the first fatalities from coronavirus in the last six months, with the rise in recorded new cases despite following the strictest zero-COVID p...