PANews reported on January 15 that according to Jinshi, the SEC filed a lawsuit in the federal court in Washington, D.C. on Tuesday, suing Musk for alleged securities violations. The SEC stated that Musk purchased more than 9% of Twitter common stock in March 2022, but failed to disclose relevant information in a timely manner, violating federal securities laws. After an 11-day delay, Musk publicly disclosed his beneficial ownership in a report submitted to the SEC on April 4, 2022. The delay allowed Musk to continue to buy Twitter shares at artificially low prices, spending at least $150 million less. On April 4, 2022, Twitter's stock price rose by more than 27% from the previous day's closing price. Musk's lawyer responded that Musk did nothing wrong and the lawsuit was "a farce."