SEC, Elon Musk Explore Settlement Over Late Twitter Stock Disclosure
In a court filing submitted Tuesday in Washington, the SEC and Musk’s legal team said the parties “had met and held consultations.”
The filing added that the sides are discussing a “potential resolution” that could eliminate the need for further court proceedings. To allow the negotiations to continue, they requested that the court extend the deadline for a joint status report by two weeks, moving it to April 1.
The SEC initiated the lawsuit last January, alleging that Musk failed to timely file a required report disclosing that he had acquired more than 5% of Twitter’s shares in March 2022.
According to reports, the SEC claims this delay violated federal securities laws.
The agency argues that Musk’s late disclosure allowed him to keep purchasing shares at lower prices, allegedly underpaying by at least $150 million. It also asserts that during this period, investors sold Twitter shares at artificially suppressed prices, suffering substantial economic harm. The SEC seeks a civil penalty and the return of the purportedly ill-gotten gains from Musk’s stock acquisitions.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
