Billionaire Elon Musk continues to be sued over Twitter acquisition

According to Reuters, CEO of social network X, Elon Musk, is accused of violating securities laws related to the delay in reporting his ownership of Twitter shares in 2022. This late disclosure not only affected the market but also gave Musk an advantage when buying Twitter shares at a lower price. The SEC estimated that this saved him at least $150 million.

X is the new name of social network Twitter, with the number of global users surpassing the 5 billion mark by 2024

Cases like Musk’s highlight the clash between the pace of technology development and traditional regulatory frameworks. For tech leaders like Musk, the speed of decision-making and control of technological resources often outpaces the ability of regulators to respond. This creates significant challenges in applying laws designed for a more traditional market.

Musk’s acquisition of Twitter in 2022 is a prime example. In just a few months, the platform went from being a public company to being privately owned, and changed its name to X. The rapid transition has raised questions about data management, security, and user privacy, with agencies like the SEC and the FTC facing pressure to keep up with these rapid changes.

The incident is not just a legal showdown, but also a reflection of the potential impact on large technology platforms and their users. When changes in ownership and management occur without timely notice, technology users and investors can be exposed to significant financial and personal risks.

The SEC’s lawsuits highlight the challenge of regulating the behavior of influential individuals in the technology industry. Founders and CEOs like Elon Musk use social media not only to promote their products, but also to directly influence the market. This requires careful consideration of personal freedom and regulatory responsibilities, especially as the technology industry continues to change rapidly and become increasingly complex.

Source: https://thanhnien.vn/ti-phu-elon-musk-tiep-tuc-bi-kien-vu-mua-lai-twitter-18525011613035984.htm