The Securities and Exchange Commission is pushing back against Elon Musk’s attempt to dismiss a lawsuit over his 2022 Twitter stock purchases, calling the case a “straightforward” violation that requires no trial.
The SEC filed a response Friday saying there is “absolutely no dispute” that Musk missed the deadline to disclose his growing stake in Twitter before his $44 billion takeover. The regulator wants US District Judge Sparkle Sooknanan to rule in its favor without going to trial.
Musk’s attorneys filed a motion Thursday to dismiss the case, arguing the billionaire caused no investor harm and that the late disclosure was inadvertent. They called the lawsuit “a waste of this court’s time and taxpayer resources.”
The case centers on federal rules requiring investors to disclose within 10 days when they acquire more than 5% of a company’s stock. The SEC alleges Musk crossed that threshold March 14, 2022, but didn’t file the required disclosure until April 4 — 11 days late.
During that period, the SEC says Musk bought more than $500 million worth of additional Twitter shares at artificially low prices, netting himself $150 million in savings while other investors were kept in the dark. The stock jumped 27% once his position became public.
“This case involves a straightforward, strict liability violation of important public reporting requirements under the federal securities laws,” the SEC wrote in its Friday filing.
Musk’s defense team counters that “the SEC does not allege that Mr. Musk acted intentionally, deliberately, willfully, or even recklessly.” They argue the agency is targeting Musk for his “protected criticism of government overreach.”
The case represents the latest clash between Musk and the SEC, which previously sued him in 2018 over tweets about taking Tesla private. That case resulted in $20 million in fines and Musk stepping down as Tesla chairman.
The current lawsuit was filed January 14, just days before President Donald Trump took office. Musk, who spent nearly $290 million helping Trump’s campaign, briefly served as a government efficiency adviser before departing in May.
The case has also created internal friction at the SEC. The lead attorney, Robin Andrews, resigned in April amid concerns the agency might settle for minimal penalties under Trump-appointed leadership.
Musk has separately requested that the case be moved from Washington, DC, to Texas, where his company X is now headquartered.
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