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Elon Musk sought to dismiss the SEC lawsuit over his delayed Twitter stake disclosure, calling it baseless and politically motivated.
A file photo of Elon Musk (AP)
Tech billionaire Elon Musk asked a US court to throw out a lawsuit brought by regulators accusing him of saving $150 million by failing to disclose his stake in Twitter on time. In a filing, Elon Musk’s lawyers described the case as “a waste of this Court’s time and taxpayer resources,” arguing that the billionaire corrected any paperwork issue immediately upon discovery.
“The SEC does not allege that Mr. Musk caused any investor harm. Rather, the SEC alleges that Mr. Musk late-filed a single beneficial ownership form three years ago… There is no ongoing violation. There is no intent. There is no harm,” they said.
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SEC’s Allegations Against Elon Musk
The US Securities and Exchange Commission (SEC) first filed its complaint in January, alleging Elon Musk violated rules requiring investors to disclose within 10 days if their holdings in a company surpass 5%. According to the SEC, Elon Musk crossed that threshold on March 14, 2022 but did not disclose it until April 4.
The regulator said the delay allowed him to buy additional shares at “artificially low prices,” inflicting “substantial economic harm to investors.”
Elon Musk went on to acquire Twitter in full later that year, renaming it X.
Elon Musk’s Response
Musk, who has repeatedly clashed with the SEC, accused the agency of pursuing him in a “relentless” and politically motivated campaign. His lawyers argued that the damages the SEC is seeking are “more than 1,500 times larger” than in similar cases, suggesting the regulator was punishing him for his outspoken criticism.
When the lawsuit was first filed, Elon Musk called the SEC a “totally broken organisation” on social media. His filing also referenced the regulator’s previous investigations into his Tesla tweets and other matters, casting them as part of a long-running pattern of excessive scrutiny.
- Location :
California, USA
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