On April 4, Elon Musk disclosed a 9.2 percent stake in Twitter to the US Securities and Exchange Commission (SEC), surpassing the 5 percent threshold for revealing ownership.
The Wall Street Journal reported on Wednesday that US regulators are investigating into Elon Musk’s delayed disclosure of his big position in Twitter Inc last month, citing people familiar with the topic.
According to the report, Musk declared a 9.2 percent stake in Twitter to the US Securities and Exchange Commission (SEC) on April 4, more than a month after reaching the 5 percent threshold for revealing a stake.
An investor who owns more than 5% of a corporation must file a report with the SEC within 10 days.It lets everyone know early on that a big investor might want to take control of the company.
The SEC declined to comment on the charges, and Tesla Inc’s CEO did not react swiftly to a Reuters request for comment.
Aside from the delay, Musk’s April 4 filing showed that he was a passive owner. This meant that he had no plans to take over Twitter or change how it was run or managed.
The next day, though, he was given a place on Twitter’s board, and a few weeks later, the world’s richest man had agreed to acquire the social media firm for $44 billion.
Musk, known for his aggressive Twitter outbursts, has had multiple run-ins with the SEC.
Most recently, a US judge told him off for trying to get out of a deal with the SEC that said his tweets about Tesla had to be managed.
The Information reported in April that the Federal Trade Commission is investigating whether Musk violated a statute requiring corporations and individuals to notice certain big transactions to antitrust enforcement authorities.
