Buying Twitter shares may get Elon Musk fined by the SEC for acquiring them in secret
A Twitter investor – by the name of Marc Rasella – decided to sue Elon Musk, accusing the businessman of having secretly acquired shares in Twitter – which resulted in a 27% increase in value when the purchase was made public.
As Gizmodo reports, Musk acquired the shares of Twitter on March 24th, and only made the purchase public on April 4th. Remember that Musk acquired 9.2% of the shares of Twitter, and the rules of the US Securities and Exchange Commission indicate that any purchase greater than 5% must be reported.
The US Securities and Exchange Commission has yet to rule on this case, but given these facts, it is likely that a fine will be imposed on Elon Musk.