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https://www.cnbc.com/2025/01/14/sec-sues-musk-alleges-failure-to-properly-disclose-twitter-ownership.html

Key Points

• The SEC on Tuesday filed a suit against Elon Musk, alleging the billionaire violated securities law by acquiring Twitter shares at “artificially low prices.”
• In his purchases, Musk underpaid for Twitter shares by at least $150 million, the SEC says.
• Musk bought Twitter in 2022 for about $44 billion, later changing the name to X.

 

[ReBurn]

Wait, Elon owns Twitter?

 

[DrFigs]

is it really worth saving a measly 150 million when you already spent 43 billion on something?

 

[Unknown Soldier]

LOL first they forced him to buy it, now they are suing him for buying it

I'm so glad in 6 days we'll be rid of these insane people and their insane agendas

 

[Mistake]

I'm confused. How do you get penalized for being ripped off?

 

[Jinzo Prime]

Don't be surprised when you see Gary Gensler in front of a judge soon.

 

[Kacho]

 

[DeepEnigma]

I'm confused. How do you get penalized for being ripped off?

When you weaponize letter agencies, you see.

 

[Kacho]

I'm confused. How do you get penalized for being ripped off?

Trust the process. Have you joined Bsky yet?

 

[TGO]

You mean they only just found out?

 

[HoodWinked]

artificially low price lol... he paid a huge premium

 

[TransTrender]

I look forward to all these SEC clowns shitcanned in the coming weeks.

 

[LordCBH]

Damn they’re still big fucking mad about Twitter being bought lmao.

 

[Artoris]

This feels really desperate

 

[Mistake]

Trust the process. Have you joined Bsky yet?

No, if I wanted to sign up for an International Sex Offenders Registry, I'd just go to reset

 

[Kacho]

No, if I wanted to sign up for an International Sex Offenders Registry, I'd just go to reset

 

[SlimySnake]

this is the main issue here:

Prior to the acquisition, he’d built up a position in the company of greater than 5%, which would’ve required disclosing his holdings to the public within 10 calendar days of reaching that threshold.


According to the SEC’s civil complaint, filed in U.S. District Court in Washington, D.C., Musk was more than 10 days late in reporting that material information, “allowing him to underpay by at least $150 million for shares he purchased after his financial beneficial ownership report was due.” Investors may have bid up the stock had they known about Musk’s purchases and interest in the company.

 

[DeepEnigma]

this is the main issue here:

 

[Dirk Benedict]

Is that real?

 

[DeepEnigma]

Is that real?

Yes.

 

[Cyberpunkd]

this is the main issue here:

Someone still has brain, thank you Sir. Although I can already imagine Musk defense:

 

[Pegasus Actual]

 

[Ribi]

Wasn't Twitter losing money? He bought a shell with value that no one else would buy because who the fuck would.

 

[SJRB]

 

[diffusionx]

Pure lawfare, they've been going after this guy with nonsensical lawsuits for years since he bought Twitter and dismantled/exposed the censorship regime.

Bringing a lawsuit because he supposedly underpaid by .34% is ridiculous, except he didn't, everyone was making fun of him for overpaying when he bought it.

 

[kruis]

is it really worth saving a measly 150 million when you already spent 43 billion on something?

Also keep in mind that Twitter/X is now worth much, much less than what he bought it for.

"The new valuation from Fidelity implies that it believes X is now worth just $9.4 billion — a far cry from the $44 billion that Musk paid. Other investors could value X differently."

https://edition.cnn.com/2024/10/02/business/elon-musk-twitter-x-fidelity/index.html

 

[diffusionx]

Also keep in mind that Twitter/X is now worth much, much less than what he bought it for.

"The new valuation from Fidelity implies that it believes X is now worth just $9.4 billion — a far cry from the $44 billion that Musk paid. Other investors could value X differently."

https://edition.cnn.com/2024/10/02/business/elon-musk-twitter-x-fidelity/index.html

I don't know what X is worth but neither does Fidelity, as X doesn't disclose its financials and has not undertaken funding rounds where people actually pay based on a valuation. Fidelity is a respectable company but this seems totally bogus. We really don't know what the company is worth right now.

 

[poppabk]

Pure lawfare, they've been going after this guy with nonsensical lawsuits for years since he bought Twitter and dismantled/exposed the censorship regime.

Bringing a lawsuit because he supposedly underpaid by .34% is ridiculous, except he didn't, everyone was making fun of him for overpaying when he bought it.

This lawsuit is for conduct from before he bought it.
From what I understand the stock price jumped 25% when he announced he had over 5% ownership. There was one day between when this should have been announced and when it was actually announced (filed).
This covers that day where he purchased shares without the sellers knowing the extent of his ownership which they legally should have - resulting in them missing out on that 25% bump.

 

[AJUMP23]

He put an offer to a board. The board had to decide if it was worth it. They decided it was. How can you underpay for something that a company accepted an offer on?

I am pretty sure everyone at the time said he overpaid.

 

[BlackTron]

Also keep in mind that Twitter/X is now worth much, much less than what he bought it for.

This is true, though Twitter's value at the point it was purchased and before Musk touched it is more relevant. Nobody asks to pay a smaller tax on a game because after they took it home and opened it, its value decreased. And then an even lower tax, because they accidentally spilled coffee on the case. We all know, it doesn't work like that. What you do with it after you buy it, is your deal.

So I don't want to kneejerk that this is agenda driven lawfare immediately, it could just be the SEC doing what it does.

 

[Arimer]

Didn't he famously pay like way over value for it? Also they are toothless in every other violation so why does he even have to worry?

 

[DeepEnigma]

Pure lawfare, they've been going after this guy with nonsensical lawsuits for years since he bought Twitter and dismantled/exposed the censorship regime.

Bringing a lawsuit because he supposedly underpaid by .34% is ridiculous, except he didn't, everyone was making fun of him for overpaying when he bought it.

That's the rub they'll try and memory hole you with from the lack of moral integrity bunch.

 

[chakadave]

I'm confused. How do you get penalized for being ripped off?

This is the orange mans case in NY as well. They said he "undervalued" collateral that he took a loan out on and the Bank was completely fine with it.

They just want price controls at all levels.

This lawsuit is for conduct from before he bought it.
From what I understand the stock price jumped 25% when he announced he had over 5% ownership. There was one day between when this should have been announced and when it was actually announced (filed).
This covers that day where he purchased shares without the sellers knowing the extent of his ownership which they legally should have - resulting in them missing out on that 25% bump.

still stupid it was inflated at that price. and the share holders knew that.

 

[poppabk]

still stupid it was inflated at that price. and the share holders knew that.

It's worth whatever people are willing to pay for it, and it was worth 25% more once Musk's 5% ownership was disclosed.
Think this would normally be quickly cleaned up but the politics make it a big deal to signal boost for both Musk and the SEC.

 

[DeepEnigma]

This is the orange mans case in NY as well. They said he "undervalued" collateral that he took a loan out on and the Bank was completely fine with it.

They just want price controls at all levels.

I guarantee you that nobody will ever be charged again for that politically motivated malpractice.

 

[chakadave]

I guarantee you that nobody will ever be charged again for that politically motivated malpractice.

I’d say it has been going on a long time and the scheme is getting exposed.

The regulations around money and financial institutions is insane. To the point they will probably try to break the internet to destroy crypto currency. Already dozens of people in jail for some sort of crypto related laws. Which are incoherent.

 

[Pegasus Actual]

Remember when Twitter was going to go offline because Elon fired too many people and turns out its fine? Though the usual suspects made the occasional minor outage that basically every service has out to be the biggest thing in the world! 2FA was down for 4 hours Elon how could you!

In a certain era Elon'd be facing 34 felonies or so for this minor filing discrepancy but that era is just about over.

Look man, we don't need the SEC trying to discourage Elon from buying shit. And we don't need gamers making fun of Elon for outsourcing his PoE2 gameplay to China. What we do need is to get him to buy Ubi and maybe have them build their own PoE2... but where item level actually fucking matters... because what kind of a bullshit trap is that, obviously it's silly to be equipping like a level 50 item when you're level 90 and something got lost in translation from the Chinese dude...