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I can't see how this can't be seen as deliberate insider trading. He bought over 13 million shares after March 24 (when he should have made his 5% public) and

I can't see how this can't be seen as deliberate insider trading. He bought over 13 million shares after March 24 (when he should have made his 5% public) and before he disclosed and the price went up by $10. This saved him $130 Million by buying from people that didn't know he'd made a large purchase.

cycomanic 5y ago
Yes seems like a pretty clear cut case to me as well, but I bet you he'll get off with a minor slap on the wrist.
- square_usual 5y ago
  If that. Musk fans love to post memes of him taking on the SEC when the SEC is flat out asleep at the wheel. Not much of a fight if the other side just rolls over most of the time.
- helsinkiandrew 5y ago
  But this isn't a SEC case (which might fine him a few $100K) it's a joint action civil case which could result in compensatory and large punitive damages if enough people join.
Dracophoenix 5y ago
You can complain about delayed disclosure, but hiding one's fame from the public until a certain point in time isn't insider trading.
- HWR_14 5y ago
  And the certain point is 5%. Otherwise you are hiding a material condition about the stock, just as if you knew that the dividends were going to be twice what they were expected.
- helsinkiandrew 5y ago
  He failed to follow strict and straight forward SEC rules on disclosing his purchase and then profited from not doing so. He may be able to get out of a SEC fine with some kind of excuse but it seems very unlikely the people who sold twitter shares in that period don’t have a very good case for compensation. https://www.sec.gov/Archives/edgar/data/25743/000138713113000737/ex14_02.htm https://www.sec.gov/Archives/edgar/data/25743/00013871311300... "Insider trading" refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security.

cycomanic 5y ago

Yes seems like a pretty clear cut case to me as well, but I bet you he'll get off with a minor slap on the wrist.

square_usual 5y ago
If that. Musk fans love to post memes of him taking on the SEC when the SEC is flat out asleep at the wheel. Not much of a fight if the other side just rolls over most of the time.
helsinkiandrew 5y ago
But this isn't a SEC case (which might fine him a few $100K) it's a joint action civil case which could result in compensatory and large punitive damages if enough people join.

Dracophoenix 5y ago

You can complain about delayed disclosure, but hiding one's fame from the public until a certain point in time isn't insider trading.

HWR_14 5y ago
And the certain point is 5%. Otherwise you are hiding a material condition about the stock, just as if you knew that the dividends were going to be twice what they were expected.
helsinkiandrew 5y ago
He failed to follow strict and straight forward SEC rules on disclosing his purchase and then profited from not doing so. He may be able to get out of a SEC fine with some kind of excuse but it seems very unlikely the people who sold twitter shares in that period don’t have a very good case for compensation. https://www.sec.gov/Archives/edgar/data/25743/000138713113000737/ex14_02.htm https://www.sec.gov/Archives/edgar/data/25743/00013871311300... "Insider trading" refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security.