The US Securities and Exchange Commission has decided to investigate the disclosure of information about Elon Musk’s acquisition of a significant stake in Twitter. As the department noted in Letter (PDF) to businessman April 4th “Does not look like it”that he has done so within the 10 days required by law. And even for this, Musk chose the form of the document, which was not suitable for such purposes.
In a letter nearly two months ago, regulators asked Musk for clarification as to why he decided to use an information disclosure form designed for passive investors — they take less risk and rely on regular income — and why the request was real received late.
The letter, sent on April 4, was only recently released by the SEC, and during that time there have been many notable events surrounding the businessman’s purchase of Twitter stock. Specifically, Musk was offered a seat on the company’s board of directors, which he declined, after which he put forward a proposal to fully take over and privatize the social network, which was accepted.
This whole series of events can significantly complicate the work of the SEC in evaluating a businessman’s actions to disclose information – it seems that the department itself does not consider its claims very promising. In fact, if until April 4th it was still possible to talk about some kind of uncertainty in the actions of the mask, by now it has clearly disappeared.