The U.S. Securities and Exchange Commission (SEC) has taken legal action against Elon Musk, accusing the tech billionaire of failing to follow disclosure rules during his 2022 Twitter takeover.

According to the SEC, Musk started purchasing Twitter shares in early 2022 and surpassed a 5% ownership stake by March 14, 2022. Federal law required Musk to publicly disclose this milestone within 10 days, but he only announced his 9% stake on April 4—11 days past the deadline.

This delay had a significant financial impact. When Musk finally disclosed his ownership, Twitter’s stock price jumped by 27%. The SEC claims Musk saved at least $150 million during this time and that shareholders who sold their shares before the announcement lost out.

The SEC is demanding Musk repay the $150 million he allegedly underpaid, along with an additional financial penalty.

Musk’s lawyer, Alex Spiro, denied the allegations and called the lawsuit part of a “multi-year campaign of harassment” by the SEC against Musk.

The case takes on a political dimension as Musk is a close ally of Donald Trump, who will take office as the U.S. president on January 20. Trump’s administration will bring changes to the SEC’s leadership, as its current chairman, Gary Gensler, has announced plans to step down.

Musk acquired Twitter in October 2022 for $44 billion and later renamed the platform X.

This lawsuit adds another chapter to the controversies surrounding Musk’s leadership and his dealings with regulatory agencies.

Stay updated for further developments in this high-stakes legal battle.