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Elon Musk's delay in revealing Twitter stake triggers SEC investigation

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Elon Musk's delay in revealing Twitter stake triggers SEC investigation
14 May 2022
6 min read

News Synopsis

On Wednesday, the Wall Street Journal,

while citing sources aware of the matter, informed that U.S. regulators are currently carrying out a probe of

Elon Musk's

delayed disclosure of his sizable stake in Twitter Inc last month. The report stated that on April 4, the CEO of Tesla, revealed a 9.2% stake in the popular microblogging platform to the

U.S. Securities and Exchange Commission (SEC),

after a delay of at least 10 days since surpassing the 5% threshold for revealing a shareholding.

According to the guidelines, any investor who goes past a 5% stake must file a form with the SEC within 10 days. Other than the delay, Musk's filing that he submitted on April 4 also termed his stake as passive. This signifies that he did not intend to acquire Twitter or influence its management or business.

However, the very next day, the SpaceX CEO was offered a position on Twitter's board, and a couple of weeks later, Elon Musk had inked a $44 billion deal to acquire the social media platform. Recently, a U.S. judge criticized Elon Musk as he was trying to escape a settlement with the SEC that required oversight of his Tesla tweets.