The SEC claims Musk cost investors at least $150 million due to the late disclosure and that he harmed any investors who sold stock between March 25th, 2022, and April 1st, 2022.

Twitter's stock price rose 27 percent once Musk belatedly disclosed his stake, the lawsuit said. "During the period that Musk was required to publicly disclose his beneficial ownership but had failed to do so, he spent more than $500 million purchasing additional shares of Twitter common stock," it said.

The SEC sued Elon Musk, claiming he deliberately waited too long to disclose his purchase of more than 5% of Twitter shares in 2022.