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.
Ukrainian President Volodymyr Zelenskyy said he talked about a possible security partnership on Sunday wit...
President Donald Trump said the U.S. and Iran have been meeting "directly and indirectly" and that Ir...
NASA is aiming to launch its Artemis 2 mission on Wednesday (1 April), sending astronauts on a 10-day journey around the Moon, officials confirmed....
Australian Prime Minister Anthony Albanese said on Monday the government would halve the excise on fuel and die...
U.S. President Donald Trump said he had "no problem" with any country sending crude to Cuba as a...
Ukrainian President Volodymyr Zelenskyy said he talked about a possible security partnership on Sunday with Jordan's King Abdullah over defending against drone attacks amid rising tensions over the Iran conflict.
President Donald Trump said the U.S. and Iran have been meeting "directly and indirectly" and that Iran's new leaders have been "very reasonable", as more U.S troops arrived in the region and Tehran warned it will not accept humiliation.
NASA is aiming to launch its Artemis 2 mission on Wednesday (1 April), sending astronauts on a 10-day journey around the Moon, officials confirmed. According to the Space Administration, the launch window is due to open at 23:24 GMT, with additional opportunities to 6 April if delays occur.
Australian Prime Minister Anthony Albanese said on Monday the government would halve the excise on fuel and diesel and remove the heavy road user charge for three months to help households cope with a surge in costs driven by the Iran war.
Cuba and the United States have been at odds for more than six decades, with tensions rooted in the 1959 revolution that transformed the island’s political and economic system. Renewed focus on relations comes as Donald Trump’s rhetoric intensifies and conditions on the island worsen.
The four astronauts selected for NASA’s Artemis II mission have arrived in Florida, entering the final phase of preparations for the first crewed journey towards the Moon in more than five decades
Iranian Military Spokesman Lieutenant Colonel Ibrahim Zulfiqari has warned that American soldiers will become 'food for sharks' if U.S. President Donald Trump launches ground attacks against Iran. The threat comes after the U.S. military said it was deploying thousands of Marines to the region.
China is moving ahead with plans to establish a nationwide long-term care insurance system, aimed at supporting its rapidly ageing population and easing the financial burden on families caring for elderly relatives.
Russian drone attacks on Ukraine have killed four people, Ukrainian officials said on Saturday (28 March).
NASA is aiming to launch its Artemis 2 mission on Wednesday (1 April), sending astronauts on a 10-day journey around the Moon, officials confirmed. According to the Space Administration, the launch window is due to open at 23:24 GMT, with additional opportunities to 6 April if delays occur.
The four astronauts selected for NASA’s Artemis II mission have arrived in Florida, entering the final phase of preparations for the first crewed journey towards the Moon in more than five decades
NASA announced on Tuesday it has cancelled plans to deploy a space station in lunar orbit and will instead use components from the project to build a $20 billion base on the moon's surface, while also planning to send a nuclear-powered spacecraft to Mars.
Chinese researchers have announced a major breakthrough in lithium battery technology - a development that could significantly improve the performance, safety and lifespan of batteries used in everything from smartphones to electric vehicles.
NASA’s Perseverance rover has detected what scientists believe may be the underground remains of an ancient river delta on Mars, offering some of the strongest evidence yet that water once flowed across the planet’s surface billions of years ago.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment