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Elon Musk Issued Summons By SEC Over Failure To Disclose Twitter Stake
- Elon Musk has been issued a court summons by the US Securities and Exchange Commission (SEC) over allegations of failing to disclose his stake in Twitter in a timely manner.
- In March 2022, Musk acquired a 5 percent stake in Twitter and later increased it to 9.2 percent, but delayed disclosing the information until April 2022.
- Musk initially denied any intention of acquiring or taking over Twitter, but later made a takeover offer for the social media platform.
- The SEC began investigating Musk's Twitter stake disclosure in May 2022 and later sued him to compel testimony, which Musk initially refused.
- Multiple lawsuits have been filed against Musk by shareholders alleging stock market manipulation in relation to his Twitter dealings.
- A court summons was delivered to Musk at SpaceX headquarters, where security guards reportedly refused to accept the documents.
- Musk faces allegations of underpaying by at least $150 million for shares purchased after he failed to disclose his ownership within the required time frame.
- The legal battle between Musk and the SEC dates back to 2018 when Musk's tweet about taking Tesla private led to penalties and his removal as Tesla chairman.
- Despite the legal challenges, Musk maintains his CEO role at Tesla and faces a deadline to respond to the latest SEC allegations by April 4.
- Musk has a history of contentious relations with the SEC, including insults and public statements undermining the authority of the regulatory agency.
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