Musk's delay in disclosing involvement on Twitter prompts SEC investigation - WSJ

Musk’s delay in disclosing involvement on Twitter prompts SEC investigation – WSJ

Elon Musk’s Twitter profile is seen on a smartphone atop printed Twitter logos in this illustration taken April 28, 2022. REUTERS/Dado Ruvic/Illustration

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May 11 (Reuters) – U.S. regulators are investigating Elon Musk’s late disclosure of his large stake in Twitter Inc (TWTR.N) last month, The Wall Street Journal reported on Wednesday, citing people familiar with the matter.

Musk disclosed a 9.2% stake in Twitter to the U.S. Securities and Exchange Commission (SEC) on April 4, a delay of at least 10 days since passing the 5% threshold for disclosing a stake. according to the report.

An investor who crosses a 5% stake must file a form with the SEC within 10 days. This is a warning sign to stakeholders that a large investor might seek to control the company.

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The SEC declined to comment on the report, and the boss of Tesla Inc did not immediately respond to a request for comment from Reuters.

Besides the delay, Musk’s April 4 filing also called his participation passive, meaning he had no plans to take over Twitter or influence its management or operations.

The next day, however, he was offered a position on Twitter’s board, and a few weeks later the world’s richest man had struck a $44 billion deal to buy the social media giant. Read more

Musk, known for his candid posts on Twitter, has a long history of skirmishes with the SEC.

More recently, a US judge criticized him for trying to evade a settlement with the SEC requiring monitoring of his Tesla tweets. Read more

In April, the news reported that the Federal Trade Commission was investigating whether Musk violated a law that requires companies and individuals to report certain material transactions to antitrust agencies. Read more

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Reporting by Mehnaz Yasmin and Eva Mathews in Bengaluru; Editing by Anil D’Silva and Devika Syamnath

Our standards: The Thomson Reuters Trust Principles.

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