The U.S. Securities and Exchange Commission (SEC) is reportedly investigating Elon Musk’s delayed disclosure of his sizable purchase of Twitter shares last month.
The Tesla CEO made his disclosure on April 4, 10 days late of the deadline for filing a purchase of more than 5% of the company’s shares. He bought a total of 9.2% of Twitter’s shares on March 24.
The SEC is investigating the tardy move, the Wall Street Journal reported, citing people familiar with the matter. Such lag had supposedly allowed Musk to go on a buying spree of stocks starting March 24 without increasing share prices since other stockholders were not alerted of his large purchases.
Analysts estimated that Musk likely saved more than $143 million by not reporting that his trades had crossed the 5% threshold.
The sources added that the SEC is also looking at how Musk said in his filing that he was a passive shareholder, with no intention to take over the company. Weeks after the filing, Musk closed a $44 billion deal to buy the social media giant.
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