The US Securities and Exchange Commission has filed a lawsuit against a prominent figure in the tech industry for allegedly failing to disclose his ownership of a major social media platform, X, formerly known as Twitter. The lawsuit claims that the individual, who recently closed a $44 billion deal to acquire Twitter, began acquiring a substantial number of Twitter shares before the deal was finalized. By mid-March 2022, the individual owned over 5% of the company's common stock but failed to disclose this information to the SEC within the required timeframe.
The lawsuit alleges that had the individual disclosed his ownership as mandated, the stock price of Twitter would likely have seen a significant increase. It is claimed that by keeping these purchases undisclosed, the individual underpaid Twitter investors by more than $150 million for his acquisitions of Twitter common stock during the period in question.
