Billionaire Elon Musk filed a motion on Thursday seeking to dismiss a civil lawsuit brought by the U.S. Securities and Exchange Commission (SEC), which accused him of waiting too long in 2022 to disclose a significant stake in social media platform Twitter, later renamed X.
The SEC, in a complaint filed in January in Washington, D.C., said Musk violated federal securities law by waiting 11 days beyond the required 10-day window to disclose his initial purchase of 5% of Twitter’s common shares. The agency sought a civil fine and forfeiture of profits it said resulted from the delayed disclosure.
SEC rules require investors to disclose within 10 calendar days when crossing a 5% ownership threshold. In Musk’s case, the deadline would have been 24 March, 2022.
According to the SEC, Musk instead purchased more than $500 million of Twitter shares at “artificially low prices” before finally revealing his stake on 4 April, 2022, by which time he held a 9.2% share.
Musk’s lawyers argued that he halted further purchases of Twitter shares and filed the disclosure one business day after his wealth manager consulted securities counsel.
“The SEC does not allege that Mr. Musk acted intentionally, deliberately, willfully, or even recklessly,” Musk’s legal team said.
“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,” they added.
The lawsuit was filed on 14 January, six days before Republican President Donald Trump took office and appointed Musk as a special adviser on federal workforce and spending reductions.
Musk faces a court deadline to respond by Friday (29 August).
Musk’s lawyers also claimed SEC was unfairly targeting him, saying the action “reveals an agency targeting an individual for his protected criticism of government overreach.”
The SEC did not immediately respond to requests for comment outside business hours.
Musk has previously clashed with the SEC, including a 2018 case over his tweets suggesting he might take Tesla private and had secured funding.
U.S. President Donald Trump said on Monday that there is a good chance” of reaching a deal with Iran, but warned that Washington would resume milita...
Prime Minister Burnham and President Volodymyr Zelenskyy visited a Royal Navy base in Portsmouth, where they met British and Ukrainian troops taking p...
Russia's Supreme Court has prohibited the transfer of funds to Digimarket, a U.S.$35 million offshore company linked to Ruben Vardanyan, as legal proc...
Iran will halt its own attacks as long as the United States maintains its pause on strikes, but Tehran remains sceptical of U.S. intentions, a senior Iranian source told on Sunday.
U.S. President Donald Trump said on Monday that there is a good chance” of reaching a deal with Iran, but warned that Washington would resume military operation if negotiations fail.
The Russia-Ukraine war is increasingly reshaping the Caspian region. From threats to energy infrastructure to renewed diplomatic efforts, countries across the region are adapting to the wider consequences of a conflict that continues to disrupt trade, transport and security.
A New York school district has put plans to introduce a humanoid robot into classrooms on hold after fierce criticism from teachers, Indigenous community members and state education officials over the use of artificial intelligence in schools.
A known Islamist suspected of driving a minivan into a crowd near a major LGBTQ Pride gathering in Berlin was shot dead during a police operation at an allotment garden complex, broadcaster RBB reported on Sunday.
A New York school district has put plans to introduce a humanoid robot into classrooms on hold after fierce criticism from teachers, Indigenous community members and state education officials over the use of artificial intelligence in schools.
SpaceX successfully launched its Starship megarocket on its 13th flight test Friday, deploying 20 next-generation Starlink V3 satellites and completing a soft splashdown of the spacecraft in the Indian Ocean.
Britain's new Prime Minister Andy Burnham has appointed Kanishka Narayan as Minister for Artificial Intelligence, making it the first time the role has held cabinet-level status. The move signals a stronger government focus on AI as the UK seeks to strengthen its position in the sector.
Scientists have identified a planetary system in the Milky Way unlike anything seen before, leaving astronomers debating how to classify one of its unusual worlds. The discovery challenges long-held definitions of planets, moons and stars.
A U.S. federal judge has approved Anthropic's $1.5 billion settlement with authors and publishers over the company's acquisition and use of pirated books to train its Claude artificial intelligence chatbot, marking the first major resolution in the growing wave of AI copyright litigation.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment