Disgorgement
In 2022, Elon Musk bought about 9% of the stock of Twitter Inc. US securities laws at the time required him to disclose his stake within 10 days after he acquired 5% of the stock. He hit 5% on March 14, 2022, so his deadline to disclose the stake was March 24. He didn’t file the disclosure, and kept secretly buying more stock.
When he ultimately disclosed his ownership on April 4, 11 days late, Twitter’s stock predictably jumped, as the market (correctly) anticipated that he would buy the whole company at a premium. Had he followed the law and disclosed ...
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