Musk called the U.S. commission suing him a broken organization

An American businessman called the Securities Commission a broken organization after he was sued for violations during the acquisition of the social network Twitter (currently X). He wrote on his page on January 15.

"Totally broken organization. They waste their time on something like this when a lot of crimes go unpunished," he wrote on X.

As Bloomberg noted, the essence of the lawsuit filed against Musk is possible fraud during the purchase of the social network. For example, the businessman is accused of failing to notify the social media platform that he owned more than 5% of its shares, which would have driven up the price.

"Because Musk failed to disclose this information, the [social network] purchase was made at an artificially low price. <...> Investors have suffered substantial damages," reads the civil suit filed in the federal court in Washington DC.

In turn, Musk's lawyer Alex Shapiro said that his client "did nothing wrong, and everyone sees this phony case for what it really is."

Earlier, on September 30, 2024, experts said the value of the former Twitter dropped by 80% after Musk bought it. At the time, Fidelity valued the platform at about $9.4 billion, the journalists estimated.

In October 2023, Fortune magazine reported that X was valued at $19 billion at the time, based on the company's employee stock compensation plan. In late December, it became known that the value of the platform had fallen by 71.5%, according to Fidelity estimates.

The social network Twitter was created in 2006. In October 2022, Musk acquired it for $44 billion. In July 2023, the social network was renamed X, while changing its logo and domain name.