In the glitzy halls of the Beverly Hilton, Elon Musk, the audacious CEO of SpaceX and Tesla, casually reflected on what he now calls a blunder—the delayed revelation of his significant Twitter stake back in early 2022.
During the 2024 Milken Conference, Musk addressed the lawsuit thrust upon him by disgruntled former Twitter shareholders. They claim Musk played coy, not disclosing his 9.2% ownership of the social media giant until 11 days past the SEC’s March 24, 2022, deadline. This delay, they argue, allowed Musk to snap up more shares at a bargain, allegedly pocketing over $200 million in the process. The stock price surged by 27% once his stake was publicly known.
In a late-night court filing in Manhattan, Musk brushed off these allegations, calling them far-fetched. He emphasized it was all a mix-up, not a Machiavellian plot to dupe investors. “This is not a scheme to defraud,” Musk asserted. “All indications—including those in the pleadings—point to mistake.”
Adding to the intrigue, the plaintiffs suggest a Morgan Stanley banker may have clandestinely aided Musk in his stock acquisition strategy. Musk denied this too, standing firm that no clandestine maneuvers were at play.
Despite the SEC’s scrutiny of his stock purchases and the ongoing legal battle led by an Oklahoma public pension fund, Musk remains undeterred. He finalized the acquisition of Twitter, rebranded as X, for a whopping $44 billion in October 2022.
Last fall, a federal judge ruled there was enough evidence to suggest Musk knew about the SEC rules, a decision that kept the lawsuit alive. Yet, Musk’s camp remains resolute, aiming to quash the case once and for all.
