Elon Musk To Pay A Penalty Or Face Full Charges

Regarding what he disclosed or did not disclose about his purchases of Twitter stock prior to purchasing the social media platform in 2022, Elon Musk claims the Securities and Exchange Commission (SEC) wants him to pay a penalty or face charges.

In a letter that Musk posted on the website that is now known as X, his attorney Alex Spiro informs Gary Gensler, the departing chairman of the SEC, that the commission’s demand for a monetary payment is a “misguided scheme” that will not scare Musk.

Additionally, the letter claims that this week the commission reopened its investigation into Musk’s computer-to-human brain interface business, Neuralink.

The letter has not yet been made public, and the Exchange Commission has declined to comment or confirm whether it has made such a demand of Musk.

“It is the policy of the SEC to conduct investigations on a confidential basis to preserve the integrity of its investigative process,” an agency spokesperson said in an email.

Spiro claims in the letter that he is replying to requests from SEC employees regarding a multi-year probe into “certain purchases, sales, and disclosures of Twitter shares.” Spiro is also insistent on knowing who ordered the actions.

For $44 billion, Musk purchased Twitter in October 2022. However, Musk was accused of missing a regulatory deadline to disclose that he had acquired a minimum of 5% of the company in a lawsuit brought by a Twitter investor in April 2022. Rather, the complaint claims that Musk did not reveal his Twitter stake until he had almost doubled it to over 9%.

The lawsuit claims that this strategy hurt ordinary investors who sold stock in the San Francisco company in the two weeks before Musk’s admission.

The lawsuit further adds that, in the two weeks prior to Musk admitting that he owned a sizable portion of Twitter, that tactic harmed regular investors who sold shares in the San Francisco-based business.

In the end, the revelation of Musk’s ownership of Twitter caused its stock to jump 27% from its close on April 1 to almost $50 by the end of trading on April Again, it says investors who had sold shares prior to Musk’s ownership of the company becoming widely known were denied the chance to realize substantial gains because of that improper delay.

The Special List Of Requests Made By Don Lemon To Elon Musk

Since 2018, Musk and the SEC have been involved in a protracted conflict. In response to Musk’s tweets claiming to have gathered the money required to take Tesla private, he and his electric vehicle company, Tesla, agreed to pay $20 million in fines. Tesla is still a publicly traded company; such a change never occurred.

Musk attempted to revoke a portion of the settlement that mandated a Tesla lawyer review his posts about the company. He had argued that the clause infringed upon his right to free speech. The matter reached the Supreme Court, which dismissed Musk’s appeal without providing a statement.

Gensler, who was nominated to lead the SEC by President Joe Biden, announced last month that he would step down from his post on January 20, 2024 when Donald Trump will be inaugurated as president. Trump has announced that intends to nominate cryptocurrency advocate Paul Atkins to chair the SEC.

Trump has named Musk as co-chair of a “Department of Government Efficiency” to try to reform the federal government.