Musk's Twitter acquisition involved violations, $48 million fine sets new SEC record for similar cases
Elon Musk has agreed to pay a $1.5 million (approximately NT$48 million) fine to settle a civil lawsuit brought by the U.S. Securities and Exchange Commission (SEC), which accused him of delaying the disclosure of his Twitter (now X) shareholdings in 2022. This fine sets a new record for similar cases handled by the SEC.
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Central News Agency
(Washington D.C., May 4, Comprehensive Foreign Report by Central News Agency) Tech mogul Elon Musk today agreed to pay $1.5 million (approximately NT$48 million) to settle a civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC), which accused him of delaying the disclosure of his Twitter (now X) shareholdings in 2022.
According to Reuters and Agence France-Presse, sources familiar with the matter stated that this civil penalty for Elon Musk sets a new record for similar cases in the SEC's history.
A partner at a New York law firm commented that while it's a "small sum for the richest man on Earth," it could serve as a deterrent, conveying "a message to the market that regulations apply to everyone, even Elon Musk."
Under the agreement, a trust named after Musk will pay the $1.5 million fine. This agreement has been submitted to a federal court in Washington and is awaiting judicial approval.
The case stemmed from Musk's continuous increase in shareholding prior to his $44 billion acquisition of Twitter in 2022, without timely notifying the regulatory authorities as required. According to SEC regulations, investors holding more than 5% of a company's stock must file a disclosure within 10 days.
The SEC alleged that Musk delayed his disclosure by 11 days, allowing him to continue buying shares at a lower price, an action estimated to have saved him approximately $150 million. Other shareholders who unknowingly sold their shares during this period consequently suffered losses.
Musk's trust only agreed to pay the $1.5 million fine and promised not to violate the same regulation again, but did not admit any wrongdoing on Musk's part.
Musk's lawyer, Alex Spiro, described the outcome as a "vindication," stating that his client "has been fully cleared of all issues related to the late filing in the Twitter acquisition case."
Spiro emphasized that the agreement reached with the U.S. government, where the trust agreed to pay a small fine for a delayed document, is not a settlement, "because he did nothing wrong." (Compiled by Lu Ying-tzu)1150505
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(Washington D.C., May 4, Comprehensive Foreign Report by Central News Agency) Tech mogul Elon Musk today agreed to pay $1.5 million (approximately NT$48 million) to settle a civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC), which accused him of delaying the disclosure of his Twitter (now X) shareholdings in 2022.
According to Reuters and Agence France-Presse, sources familiar with the matter stated that this civil penalty for Elon Musk sets a new record for similar cases in the SEC's history.
A partner at a New York law firm commented that while it's a "small sum for the richest man on Earth," it could serve as a deterrent, conveying "a message to the market that regulations apply to everyone, even Elon Musk."
Under the agreement, a trust named after Musk will pay the $1.5 million fine. This agreement has been submitted to a federal court in Washington and is awaiting judicial approval.
The case stemmed from Musk's continuous increase in shareholding prior to his $44 billion acquisition of Twitter in 2022, without timely notifying the regulatory authorities as required. According to SEC regulations, investors holding more than 5% of a company's stock must file a disclosure within 10 days.
The SEC alleged that Musk delayed his disclosure by 11 days, allowing him to continue buying shares at a lower price, an action estimated to have saved him approximately $150 million. Other shareholders who unknowingly sold their shares during this period consequently suffered losses.
Musk's trust only agreed to pay the $1.5 million fine and promised not to violate the same regulation again, but did not admit any wrongdoing on Musk's part.
Musk's lawyer, Alex Spiro, described the outcome as a "vindication," stating that his client "has been fully cleared of all issues related to the late filing in the Twitter acquisition case."
Spiro emphasized that the agreement reached with the U.S. government, where the trust agreed to pay a small fine for a delayed document, is not a settlement, "because he did nothing wrong." (Compiled by Lu Ying-tzu)1150505
Choose to stand with facts, every sponsorship you provide is a force to protect press freedom.
Download the Central News Agency "First-Hand News" APP to stay updated with the latest news.
Text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.