The suspension of Musk’s purchase of Twitter shares was appreciated: Investments: Economics:

Lawyer Semenovsky: stopping Musk’s purchase of Twitter may be considered a violation of the law

Actions Mask may have negative consequences because they may be perceived as market manipulation. Steps of this nature may contain the composition of a delicate offense, but liability for them will only be of a property nature in the form of fines. This is how Elon Musk’s suspension of the deal to buy Twitter was assessed by a senior lecturer in the Faculty of Law Financial University under the Government of the Russian Federation Igor Semenovsky. In a conversation with, he spoke about the peculiarities of American legislation.

Negative consequences

Twitter shares in premarket on the Nasdaq collapsed by almost 26 percent after billionaire Elon Musk announced the suspension of the deal to buy the social network, according to data from the site. On May 13, Musk announced on his Twitter account that the deal to buy the social network was temporarily frozen. The end of the verification of data on the number of fake accounts is expected.

“The US joint stock legislation is very sensitive to issues of large transactions, timely disclosure of information and, in general, those factors that can have a significant impact on the stock market and capitalization of companies,” Semenovsky said.

The lawyer is sure that before buying a large business in the USA, it must be assessed and audited. Transactions do not take place without receiving such data.

“In this regard, there can be two conclusions: either Musk was really in a hurry to announce the purchase of Twitter, when he did not yet have full data on the state and details of the social network, or Musk already knows all the information about the company and simply generates informational occasions on a hot topic,” – he said.

Both actions can have negative consequences that can be perceived as market manipulation.

Igor Semenovskylawyer

Igor Semenovsky shared information that an investigation is already underway against Musk.

“According to a number of US media reports, the federal regulator, the US Securities and Exchange Commission, is already investigating Musk’s untimely disclosure of his purchase of a stake in Twitter and strengthening his corporate control over the service,” the lawyer said.

At the same time, Semenovsky is convinced that liability will only be of a property nature.

Actions of this nature may contain the composition of a delicate offense, but liability for it will be of a property nature in the form of fines.

Igor Semenovskylawyer

“There could also be adverse corporate repercussions. Bringing to criminal responsibility in this case is extremely unlikely,” he said.

Judicial background Mask

Igor Semenovsky recalled that Elon Musk is already familiar with administrative and judicial procedures.

“A few years earlier, the businessman had already been accused by representatives of other companies and regulators. This concerned the manipulation of the value of shares of his Tesla company, the means for which were just the same posts on the social network Twitter. In 2019, the US Securities and Exchange Commission ordered Musk not to disclose important information about the work of Tesla without its prior approval, ”said the lawyer.

Another scandalous story happened in 2021, Semenovsky said.

“The story is related to the manipulation in 2021 of the prices of cryptocurrencies, in particular, Dogecoin, Ethereum and Bitcoin. Since Musk has great authority and popularity in the US, many ordinary investors rely on his opinion, whose share can reach up to 40% of the market. This already volatile market was significantly affected precisely because of Musk, which also attracted the close attention of regulators, ”he concluded.

The final closing date of the transaction is set for October 24, 2022. Purpose of buying Twitter businessman named not commercial interests and the search for interesting investments, but the desire to create a public platform that enjoys maximum trust in society around the world and gives everyone the right to speak.

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