The Securities and Exchange Commission is investigating Elon Musk’s delayed disclosure of his sizable stake in Twitter last month, the Wall Street Journal reported on Wednesday, citing people accustomed to the matter.
The SEC and the Tesla top boss didn’t immediately reply to Reuters’ requests for comment.
On April 4, Musk disclosed a 9.2% stake in Twitter, making him the micro-blogging site’s largest shareholder. Per week later, he clinched a $44 billion deal to purchase the corporate.
The SEC is probing Musk’s tardy submission of a public form that investors must file after they buy greater than 5% of an organization’s shares, the Journal reported. The disclosure functions as an early sign to shareholders and corporations that a major investor could seek to manage or influence an organization.
Investors who cross that line are required to file a form with the SEC revealing their stake inside 10 days. Musk’s holdings topped 5% on March 14, securities filings show, meaning he must have disclosed his stake by March 24 under SEC rules, the Journal reported.
Individually, the Information earlier reported that the Federal Trade Commission is investigating whether Musk violated a law that requires corporations and folks to report certain large transactions to antitrust-enforcement agencies.