US markets regulator files lawsuit against Elon Musk for delay in reporting stakes of X

​​​​​​​Fatma Zehra Solmaz

ISTANBUL (AA) - The US Securities and Exchange Commission (SEC) filed a lawsuit against Elon Musk, accusing him of breaking rules by failing to disclose his ownership of more than 5% of X shares within the required 10-day period.

The US markets regulator alleged Tuesday that Musk delayed filing the necessary report by 21 days, allowing him to buy more shares at lower prices before the public knew of his significant stake in the company. The delay reportedly helped Musk save at least $150 million.

The regulator claimed that because the public was not aware of Musk’s growing ownership, X’s stock price remained artificially low during that time. The situation allegedly caused financial harm to other shareholders who sold shares without knowing the full picture of Musk’s investment.

The SEC is seeking to impose a fine on Musk and make him return the profits he gained from the delay.

The regulator said Musk’s violation caused “substantial economic harm to investors” and requested the court, in its filing, to require him to pay a fine and return “unjust” profits.

In response to the lawsuit, Musk posted on X, criticizing the SEC as a “totally broken organization” and accused it of wasting time on him instead of focusing on real crimes.

Musk, a major supporter of incoming US President Donald Trump, is set to play a role in Trump's second tenure at the White House, which starts Monday.​​​​​​​