Elon Musk Pocketed $156 Million by Delaying Twitter SEC Filing, Report Says

[Yo_Mama_Been_Loggin]

Twitter’s newest board member appears to have begun his tenure by violating securities laws—while raking in $156 million in the process.

According to a new report from The Washington Post, Elon Musk had accumulated a 5 percent ownership stake in Twitter by March 14, at which point he was obligated to alert investors. But he didn’t. Instead, he kept buying up shares at “an artificially low price,” the paper said, ultimately acquiring a 9.2 percent interest in the social media company.

Once news of Musk’s investment was publicized this week, shares of Twitter spiked more than 25 percent. By buying in advance of that surge, the billionaire may have netted an extra $156 million, David Kass, a professor at the Robert H. Smith School of Business, told the Post.

“I really don’t know what’s going through his mind. Was he ignorant or knowledgeable that he was violating securities law?” he said.

https://www.msn.com/en-us/news/technology/elon-musk-pocketed-156-million-by-delaying-twitter-sec-filing-report-says/ar-AAVWvEm

[Faux pas]

1. ...

Just another greedy government subsidized pig.

[lame54]

2. Ignoramt? Fuck that...

He spouts harmful b.s. all the time which people listen to because "he's a genuis"

So, Mr. Genuis does not get to plead ignorance

[BadgerKid]

3. The rule is 10 days upon reaching 5%

of voting shares, then every 1% change thereafter.

The cynicism around the water cooler is that SEC’s fines are a drop in the bucket.

[RainCaster]

4. Rules are only for the little people

[rockfordfile]

5. Then Why don't SEC bust his ass

[Initech]

6. What a piece of shit!

He's clearly a member of the "Give me that, it's mine!" club.

[Midnight Writer]

7. Probably get a $10,000 fine. No, of course I'm kidding.

They won't touch him.

[edhopper]

8. Martha Stewart

That's all I have to say.

[CrackityJones75]

9. Does it fucking matter????

“I really don’t know what’s going through his mind. Was he ignorant or knowledgeable that he was violating securities law?”


Does it matter? It doesn’t if you or I do it! Ignorance is not a defense,

[Baked Potato]

10. Darn it! He should tweet an apology. Nt

[LetMyPeopleVote]

11. Elon Musk sued by investor over delayed Twitter filing

Elon Musk violated the federal securities laws by not filing a Schedule 13d timely. This can be a serious violation of the securities laws. You have to file a schedule 13d within 10 days after you own 5% or more of the stock of a public company. Back in the good old days of hostile public take overs, clients would time the filing to get the benefit of weekends and I am so old that I remember when these forms were filed on paper and not electronically. This will be a fun lawsuit to watch

Link to tweet

https://www.nbcnews.com/tech/tech-news/elon-musk-lawsuit-twitter-sued-sec-disclosures-rcna24138?cid=sm_npd_nn_tw_ma

Billionaire Elon Musk is facing a lawsuit following a week of headlines created by his purchase of 9.2 percent of Twitter's stock. An investor sued Musk on Tuesday and proposed a class-action lawsuit against him for not disclosing his purchase to the Securities and Exchange Commission sooner.

The plaintiff, Marc Rasella, said in the lawsuit filed in federal court in Manhattan, New York, that he lost money by selling shares of Twitter at “artificially deflated prices” because Musk waited beyond the mandated SEC deadline to disclose his stake.

Musk disclosed in an SEC filing on April 4 that he had bought shares representing 9.2 percent of Twitter, making him the largest outside shareholder of the company’s stock. The share price rose more than 27 percent after the news.

Rasella said in the lawsuit that Musk had an obligation mandated by the SEC to disclose his stake within 10 days of passing a 5 percent ownership threshold, a deadline that would have been March 24.

[Kid Berwyn]

12. Musk don't care.

He’ll pay something like a $5 million fine, peanuts.