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Globe/NYT say SEC eyeballs Musk's dodgy disclosures

2022-07-15 09:11 ET - In the News

See In the News (C-*SEC) U S Securities and Exchange Commission

The Globe and Mail reports in its Friday edition that the U.S. Securities and Exchange Commission has broadened its inquiry into whether Elon Musk properly disclosed his investment in Twitter and his intentions for the social-media company, the agency revealed Thursday in a filing. A New York Times item inside The Globe says that the agency raised questions about a tweet from Mr. Musk in May in which the billionaire claimed that his $44-billion (U.S.) acquisition of Twitter Inc. "cannot move forward" because of spam on the platform. The tweet suggested Mr. Musk planned to abandon the deal, the SEC wrote in a letter to Mr. Musk's lawyers in June. The letter was included in a filing on Thursday. The about-face was a material change to Twitter's status that should have been disclosed to the agency and investors, but the required disclosure never materialized, the SEC wrote in its letter. The agency also demanded "a clear statement as to Mr. Musk's current plans or proposals with respect to the acquisition of Twitter." In response, Mr. Musk's lawyers said he had not changed his plans and was simply seeking more information from Twitter. On Tuesday, the company sued Mr. Musk to force the acquisition through.

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