The SEC sued Elon Musk for failing to disclose in a timely manner his acquisition of more than $500 million in Twitter stock in 2022. According to the agency, this allowed him to save at least $150 million and harmed investors who sold during that period. The case has been resolved with a settlement that turns out to be a bargain for the magnate.
The cost of hiding a million-dollar stock move 💰
The lawsuit stated that Musk, by failing to disclose his stake within the legal 10-day period, bought shares at artificially low prices. The Elon Musk Revocable Trust, added as a defendant, will pay a civil penalty of only $1.5 million without admitting or denying the allegations. The amount is minimal compared to the savings obtained and the capital moved in the operation.
Pocket change fine for a stellar fortune 🚀
Paying $1.5 million for a $150 million savings is the financial equivalent of finding a 50-euro bill in an old jacket. For Musk, it's as if the SEC asked him for the change from the purchase. Investors who sold cheap probably don't find the joke as funny, but the trust's pocket seems to be in a good mood.