SEC Sues Musk Over Twitter Stock Buys, Escalating Long-Simmering Feud

The lawsuit comes after a long investigation that Musk sometimes delayed

- Dave Michaels & Alexa Corse

The Securities and Exchange Commission on Tuesday sued Elon Musk over allegations he misled shareholders about his Twitter stock purchases, escalating the agency's long-simmering feud with the billionaire.

The SEC's lawsuit, filed in federal court in the District of Columbia, says Musk's delayed disclosure of his ownership allowed him to save more than $150 million on buying Twitter stock. The late disclosure hurt investors who sold at artificially low prices because they didn't know about Musk's plans, the SEC says.

The lawsuit comes after a long investigation that Musk sometimes delayed by not appearing for testimony. Musk, now closely aligned with President-elect Donald Trump, will likely ask the commission's next leader to withdraw the case, teeing up a major test of the agency's independence from the White House.

The current SEC Chair, Gary Gensler, is about to depart his role. Trump selected Republican lawyer Paul Atkins, who has been critical of SEC enforcement in the past, to replace Gensler.

The lawsuit alleges Musk violated a law that requires investors to disclose a stake of 5% or more in a public company within 10 days. The rule, known as 13-D, functions as an early-warning mechanism for investors who need to know that a large stockholder may seek to influence or take over a company.

Musk called the SEC a "totally broken organization" in a post on X. "They spend their time on s--- like this when there are so many actual crimes that go unpunished," he said.