**Elon Musk Seeks Dismissal of SEC Lawsuit Over Twitter Stake Disclosure**
Billionaire entrepreneur Elon Musk has filed a motion to dismiss a civil lawsuit brought against him by the U.S. Securities and Exchange Commission (SEC). The lawsuit alleges that Musk delayed revealing his significant stake in Twitter, now known as X, during 2022. According to the SEC’s complaint, filed in January in a federal court in Washington, D.C., Musk violated federal securities laws by failing to disclose his initial purchase of 5% of Twitter’s common shares within the required timeframe, specifically waiting 11 days too long.
The SEC is seeking to impose a civil fine on Musk and to recover profits that it claims resulted from his alleged violations. Musk’s legal team contends that he ceased purchasing additional shares of Twitter and submitted his disclosure just one business day after consulting with his wealth manager and securities disclosure counsel regarding the filing requirements. Under SEC regulations, investors must disclose their ownership when they surpass the 5% threshold within 10 calendar days, which in Musk’s case would have been by March 24, 2022.
The SEC asserts that Musk took advantage of unsuspecting investors by acquiring over $500 million in Twitter shares at artificially low prices before finally disclosing his purchases on April 4, 2022, by which time his stake had grown to 9.2%. The lawsuit was filed on January 14, just days before the inauguration of Republican President Donald Trump, who later appointed Musk as a special adviser to reduce federal workforce and spending.
Musk’s lawyers argue that the lawsuit should not have been initiated, emphasizing that Musk did not intend to cause any harm. They claim that the SEC’s actions reflect an agency targeting Musk for his outspoken criticism of government overreach. “The SEC does not allege that Mr. Musk acted intentionally, deliberately, willfully, or even recklessly… Rather, the SEC alleges that Mr. Musk late-filed a single beneficial ownership form three years ago and fully corrected any alleged error immediately upon its discovery. There is no ongoing violation,” stated Musk’s legal representatives.
The SEC has not provided a comment outside of regular business hours. Musk has had a contentious relationship with the SEC, notably after the agency sued him in 2018 over his tweets regarding the potential privatization of Tesla and claims of secured funding.
**FAQ**
**What is the SEC lawsuit against Elon Musk about?**
The SEC lawsuit accuses Elon Musk of failing to timely disclose his 5% stake in Twitter, alleging he violated federal securities laws by delaying the announcement and profiting from the situation.
