Musk seeks dismissal of lawsuit over delayed disclosure of Twitter share purchase

Elon Musk is attempting to have a lawsuit filed by U.S. regulators dismissed, which accuses him of failing to disclose an increase in his Twitter stake within the required time frame. The U.S. Securities and Exchange Commission (SEC) claimed that Musk’s late filing saved him approximately $150 million by allowing him to purchase Twitter shares at artificially low prices before eventually taking the company private and renaming it X. The SEC alleged that Musk violated securities rules that require investors to disclose their holdings once they surpass 5%. However, Musk’s legal team argued that the violation was minimal, caused no harm to investors, and was promptly corrected once identified. The SEC had asked for a monetary penalty for this late filing, but Musk’s lawyers dismissed the lawsuit, calling it a waste of resources. They also accused the SEC of relentlessly pursuing him due to his outspoken criticisms of government actions. This case is the latest in a series of high-profile legal issues involving Musk and the SEC, including a previous lawsuit regarding a tweet about Tesla’s ownership. The SEC has yet to respond to the latest filing.