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 familiar with the matter.
The SEC and the Tesla top boss did not immediately respond 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. A week later, he clinched a $44 billion deal to buy the company.
The SEC is probing Musk’s tardy submission of a public form that investors must file when they buy more than 5% of a company’s shares, the Journal reported. The disclosure functions as an early sign to shareholders and companies that a significant investor could seek to control or influence a company.
Investors who cross that line are required to file a form with the SEC revealing their stake within 10 days. Musk’s holdings topped 5% on March 14, securities filings show, meaning he should have disclosed his stake by March 24 under SEC rules, the Journal reported.
Separately, the Information earlier reported that the Federal Trade Commission is investigating whether Musk violated a law that requires companies and people to report certain large transactions to antitrust-enforcement agencies.