Things Are Getting Awkward for Musk and Twitter Board Over Sale
Musk has the SEC breathing down his neck over sell, meanwhile, Musk ally will stay on Twitter’s board despite a vote to originally boot him.

The U.S. Securities and Exchange Commission (SEC) revealed Friday that it has long been investigating whether Musk had properly relayed his intentions with Twitter. The agency’s regulatory filings included a letter sent to Musk April 4 that asked for clarification on multiple discrepancies found in Musk’s original shares purchases. The letter stated that Musk failed to disclose his stake at the correct time.

On April 4, the same day that Musk initially revealed he had bought up a more than 9% stake in Twitter and become the company’s largest shareholder, the SEC sent him a letter asking why he appeared to have delayed disclosing his stake in an apparent violation of securities law.

In its letter to Muskwhich emerged Friday, the SEC asked him to “please advise why the [initial disclosure] does not appear to have been made within the required 10 days” from the date on which he acquired a stake in the company greater than 5%.

This letter came to Musk only 10 days before Musk blew the doors off at Twitter headquarters with his $44 billion proposal to buy the company at $54.20 a share. So far, neither the SEC nor Musk have talked about this ongoing dispute on the record. The SpaceX CEO is no friend to the SEC, and he has previously been taken to task over the improper way he announced his plans to take Tesla private in 2018. $40 million later, Musk was required to put any tweets dealing with buying stock past a lawyer before posting.

 

At the same time, there has been even more shakeup on Twitter’s board. Board members originally blocked fellow member and Musk ally Egon Durban’s reelection to the board on Wednesday. But after Durban put forward a letter of resignation, the board decided to reject his request to step down, according to Reuters.

Musk’s delayed disclosure saved the billionaire around $143 million by keeping the share price lower than it might have been as he continued to buy shares, Daniel Taylor, a University of Pennsylvania accounting professor, has estimated.
 

 

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