STORY: Elon Musk’s stake in Twitter has caught the eye of the SEC.
The agency revealed it is looking into the Tesla CEO’s disclosure last month that he had taken a 9.2.% stake in Twitter, making him the company’s largest shareholder.
In a letter sent by the SEC to Musk in April – which the regulator made public on Friday – it asks the billionaire why it appears he did not file his paperwork within the required 10-day window.
The SEC is also looking into whether Musk accurately disclosed his intentions with the social media platform. Specifically, it asked Musk to explain why he opted to ultimately file a "13G" disclosure form, which is meant for investors who plan to hold their shares passively instead of a "13D" form, which is for activist investors who intend influence management and policies of the company.
Less than two weeks after disclosing his stake, Musk offered to buy Twitter for $44 billion.
It’s not the first time Musk has sparred with the SEC. Last month he called them “bastards” for bringing fraud charges against him in 2018 over his tweets about potentially taking Tesla private.
Spokespeople for the SEC and Musk did not immediately respond to requests for comment.
Musk is also being sued by Twitter shareholders who claim that he manipulated Twitter’s stock price downward as he looked to buy shares. They are seeking punitive and compensatory damages.