Musk Seeks Dismissal of SEC Lawsuit Over Twitter Shares

The SEC filed a complaint in January claiming Musk violated securities rules by failing to disclose his increased stake in Twitter within the mandatory 10-day window. According to the SEC, Musk's delayed disclosure allowed him to purchase Twitter shares at "artificially low prices," saving him approximately $150 million. Musk's acquisition of Twitter, which he later rebranded as X, has been under the regulatory microscope since the transaction was completed.

Musk's legal team argues that the lawsuit is unfounded, describing it as "a waste of this Court's time and taxpayer resources." They contend that there was no intentional wrongdoing, ongoing violation, or harm to investors. Musk's lawyers assert that the error was corrected immediately upon discovery, emphasizing that the SEC does not claim any investor harm. This response was filed just before the court's deadline, and it highlights Musk's ongoing conflict with the regulatory body.

The SEC's complaint alleges Musk should have disclosed his stake in Twitter by March 14, 2022, but failed to do so until April 4, 2022. Despite the SEC's claims of economic harm to investors, Musk has publicly criticized the agency, calling it a "broken organization" and accusing it of targeting him due to his outspoken criticism of government overreach. This is not Musk's first run-in with the SEC; previous investigations, including one where a jury cleared him of wrongdoing over a Tesla-related tweet, have highlighted the ongoing tension between Musk and the regulatory body.

The SEC has declined to comment on the lawsuit or Musk's recent court filing. This legal maneuvering comes amid Musk's broader narrative of challenging regulatory oversight, positioning himself as a critic of what he perceives as excessive government intervention. The outcome of this case could have implications for how investor disclosure rules are enforced, particularly for high-profile figures like Musk.