The SEC filed a lawsuit Tuesday in federal court in Washington, D.C., against Musk for alleged securities violations. The SEC says Musk violated federal securities laws by purchasing more than 9% of Twitter's common stock in March 2022 but failing to disclose the relevant information in a timely manner. The delay took 11 days before Musk publicly disclosed his beneficial ownership in a report to the SEC on April 4, 2022. The delay allowed Musk to continue buying Twitter stock at an artificially depressed price, saving at least $150 million. On April 4, 2022, Twitter's stock price rose more than 27% from the previous day's closing price. Musk's lawyer responded by saying that Musk had done nothing wrong and that the lawsuit was "a farce". (Jin Ten)