Elon Musk Sued By US Exchange Institution For Twitter Purchase Process

Elon Musk has been sued for Twitter purchases (photo: X @elonmusk)

JAKARTA Elon Musk's actions when buying Twitter are still a problem today. The Securities and Stock Exchange Commission (SEC), which has long clashed with Musk, has finally filed a lawsuit.

The SEC, in a federal lawsuit filed, stated that Musk violated the securities law for delaying announcing its acquisition. Musk is also considered to have saved $150 million for being late in revealing his purchases.

"The defendant Elon Musk failed to submit a claim to the SEC on time that disclosed his acquisition," the SEC wrote in a lawsuit. "As a result, Musk can continue to buy shares at very low prices."

Before the transaction was agreed upon by both parties, Musk agreed to buy Twitter at a price of 44 billion US dollars (Rp716 trillion). However, this transaction failed because Musk decided to withdraw from the agreement made.

After being forced to continue its purchase plans, Musk began taking over Twitter by buying substantial shares in the company. This action should be announced no later than about 10 days after the transaction is made.

However, until a few weeks after the share purchase, Musk did not announce this. The SEC revealed that Musk had to file documents no later than March 24, 2022, but the billionaire had just submitted the documents on April 4.

Musk's actions are considered detrimental to investors, especially those who sell shares between March 25 and April 1. This loss reached Rp2.4 trillion so that the SEC demanded compensation of the amount of money Musk earned during that period. The SEC will also set a civil fine and other penalties.