Investing.com-- Tesla (NASDAQ:TSLA) CEO Elon Musk was called to court by the Securities and Exchange Commission over a lawsuit regarding the timely disclosure of a stake in Twitter, Reuters reported on Thursday, citing a court filing.
Musk was served the summons through a process server handing the documents to a security guard at the Brownsville, Texas headquarters of Musk’s SpaceX. A response is due by April 4, the report said.
The SEC has accused Musk of violating securities law by waiting too long to disclose a large stake in Twitter, which he had amassed before launching a takeover bid for the company in 2022.
The SEC alleged that Musk waited for 11 days too long to disclose the stake, which was over 5% of Twitter’s shares.
Musk had purchased Twitter in 2022 and then rebranded the firm into X. He had paid about $44 billion for the social media platform, with backing from several banks and other investors.