SEC publishes letter asking Elon Musk to explain late Twitter filing

The US financial watchdog has contacted Elon Musk about the disclosure of his stake in Twitter, asking the Tesla chief executive why he appeared to file a crucial form late.

Investors filed a lawsuit against Musk on Wednesday in which they claimed Musk had saved himself $156m by failing to disclose that he had bought more than 5% of Twitter in a timely manner.

The letter also asks Musk to explain why he filed a 13G, which is for passive investors who are not preparing to shake up the business in question. The SEC points out that an investor must file a different form, a 13D, if they have bought the shares with the intention of changing or influencing the control of the company in question. The day after filing his initial form, Musk refiled it as a 13D, for investors who intend to take an active role.

Durban is co-chief executive of private equity firm Silver Lake and is an ally of Musk.