The SEC has filed a lawsuit against Elon Musk, alleging he violated US securities laws by failing to timely disclose ownership of over 5% of Twitter’s stock in early 2022. According to the SEC, Musk began purchasing Twitter shares in early 2022 and owned more than 5% by March 14, 2022. The regulator claims Musk did not file the necessary beneficial ownership report until April 4, 2022, which was 11 days late. This delay allowed him to acquire shares at artificially low prices, costing him an estimated $150 million. The SEC also noted that on the day Musk finally reported his ownership, Twitter's stock price surged by more than 27% from the previous day's closing price. This situation placed unsuspecting investors at a disadvantage, as they were unaware of Musk's significant stake at the time of their transactions. The case continues to develop as more information is expected to emerge.

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