The post Big News: SEC Moves Forward with $150 Million Lawsuit Against Elon Musk appeared first on Coinpedia Fintech News
According to ABC News, the Securities and Exchange Commission has decided to continue it’s $150 Million lawsuit against Elon Musk. As stated in a court filing on Monday, the leader of the Department of Government Efficiency has agreed to address the lawsuit alleging that he misled investors during his purchase of millions of dollars in Twitter stock in 2022, before acquiring the company.
The SEC, under former chairman Gary Gensler, had filed a lawsuit in January 2025, accusing him of securities fraud related to his $44 billion takeover of Twitter, now known as X. The lawsuit alleges that Musk failed to timely disclose his ownership stake in Twitter before completing the purchase in 2022.
According to the SEC, Musk’s failure to report his stake—which exceeded 5% of the company—before the March 24, 2022 deadline allowed him to undervalue the shares he acquired. Regulators claim this non-compliance resulted in Musk paying at least $150 million less than he should have for the shares purchased after his disclosure was due. The lawsuit states that Musk filed his ownership report after the deadline, causing Twitter’s stock price to surge 27% following the filing.
Oh Gary, how could you do this to me?
pic.twitter.com/OoooQI77ZS
— Elon Musk (@elonmusk) December 12, 2024
Musk’s attorney, Alex Spiro, dismissed the lawsuit, stating that Musk has “done nothing wrong” and describing the legal action as a “sham.” This legal battle comes after years of scrutiny surrounding Musk’s Twitter acquisition. In 2023, the SEC also sued Musk for refusing to testify about the deal, claiming he “abruptly notified SEC staff” just two days before a scheduled appearance, citing “spurious objections.”
