Tesla CEO Elon Musk is facing a lawsuit from the US Securities and Exchange Commission (SEC) over allegations that he purchased Twitter shares at artificially low prices, according to US news reports.
The lawsuit, filed in federal court in California, alleges that Musk used his influence and knowledge of Twitter’s financial situation to take advantage of a dip in the stock price. The SEC claims that Musk acquired the shares at prices far below their true value, causing harm to other investors who were not privy to the same information.
Musk, known for his controversial tweets and market-moving statements, has been a frequent target of the SEC in the past. The agency previously sued Musk for securities fraud over a tweet in which he claimed to have secured funding to take Tesla private. Musk ultimately settled with the SEC, agreeing to step down as Tesla’s chairman and pay a $20 million fine.
This latest lawsuit comes as Musk’s influence in the tech and finance worlds continues to grow. His recent purchase of a significant stake in Twitter has raised questions about his intentions and potential conflicts of interest.
In response to the lawsuit, Musk’s lawyers have denied any wrongdoing, arguing that he acted in good faith and in the best interests of his companies and shareholders. They have vowed to fight the allegations in court and prove Musk’s innocence.
The outcome of the lawsuit could have significant implications for Musk and his reputation in the business world. If found guilty, he could face hefty fines and restrictions on his ability to trade stocks in the future. However, if he is able to successfully defend himself, it could bolster his image as a savvy investor and entrepreneur.
Overall, the lawsuit against Musk highlights the ongoing scrutiny and challenges faced by high-profile figures in the tech industry. As the SEC continues to crack down on market manipulation and insider trading, it serves as a reminder that even the most powerful individuals are not above the law.