According to the Wall Street Journal, Elon Musk faces an investigation into the details of how he took a substantial stake in Twitter after federal regulators say he was late in filing a key form.
Musk disclosed on April 4 that he crossed the 5% threshold on March 14, which meant that his purchase had to be disclosed by March 24.
Ultimately, he didn’t do that, and the subsequent Twitter stock purchases he made after March 24 brought him to the 9.2% ownership stake which he announced on April 4.
His 5% stake was likely much lower had he disclosed it in a timely fashion, as he purchased the additional 4.2% at a price between $38.20 and $40.31 per share.
The late disclosure is likely to have saved Musk nearly $145 million, University of Pennsylvania accounting professor Daniel Taylor said to WSJ.
The professor noted that Twitter’s stock price shot up to $49.97 the day Musk announced his purchase.
Several security law experts have warned that Musk’s move could result in another battle with the SEC after his disclosure in April.
“It is bewildering,” Marc Steinberg, a law professor at the Southern Methodist University School of Law, said to FOX Business at the time. “He obviously has very good legal counsel, especially regardingling a form with the SEC and when to file it.”
IMusk will likelysettle the case, and now he must have a lawyer review every tweet he makes about Tesla.