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.
Israel’s Prime Minister Benjamin Netanyahu, in an interview with Fox News on Tuesday, defended Israeli strikes on Gaza following a ceasefire, confir...
Russia launched an overnight drone attack on Ukraine’s Odesa region, damaging residential buildings and infrastructure, and injuring four people, in...
Thailand released 18 Cambodian soldiers on Wednesday, ending their 155-day detention. This comes after a ceasefire agreement between the two countries...
Germany’s military planners warn that cyberattacks, sabotage, and disinformation could signal the start of a new war, according to a confidential go...
A tragic train collision near Machu Picchu, one of Peru's most iconic tourist destinations, has resulted in the death of a train driver and left at le...
Russia launched an overnight drone attack on Ukraine’s Odesa region, damaging residential buildings and infrastructure, and injuring four people, including three children, according to regional authorities on Wednesday.
Thailand released 18 Cambodian soldiers on Wednesday, ending their 155-day detention. This comes after a ceasefire agreement between the two countries halted 20 days of fighting that killed over 100 people and displaced more than half a million. The soldiers were handed over at a border checkpoint.
Germany’s military planners warn that cyberattacks, sabotage, and disinformation could signal the start of a new war, according to a confidential government document seen by Politico. The plan outlines how Germany would defend itself in a major NATO conflict.
A tragic train collision near Machu Picchu, one of Peru's most iconic tourist destinations, has resulted in the death of a train driver and left at least 40 others injured. The incident occurred on Tuesday, when two trains collided head-on on the railway that leads to the ancient Inca citadel, which
Protests in Iran over soaring prices and a plunging rial have spread to universities in Tehran, as students join shopkeepers and bazaar merchants in demanding government action. With inflation above 42% and the rial at record lows, unrest continues to grow across the country.
Roman Abramovich, the Russian billionaire and former Chelsea Football Club owner, has assembled a “top tier” legal team, including a former White House advisor, as he prepares for a legal battle in Jersey.
The head of Yemen’s Presidential Council, Rashad al-Alimi, has ordered all forces linked to the United Arab Emirates to leave Yemen within 24 hours.
Max Verstappen has been voted Formula 1’s driver of the year for a fifth straight season by team principals, despite narrowly missing out on the championship.
Syria’s permanent representative to the United Nations, Ibrahim Olabi, said Israel has occupied the Syrian Golan Heights for almost sixty years, and that the UN General Assembly this month once again reaffirmed Syria’s sovereignty over the region.
Poland has asked the European Commission to investigate TikTok after artificial intelligence-generated content calling for the country to leave the European Union appeared on the platform, which Warsaw says was likely Russian disinformation.
Tianhui-7 satellite to be used for geographic mapping, land resource surveys, and scientific research.
Iran successfully launched three satellites on Sunday using a Russian Soyuz rocket from Russia’s Far East, marking the latest stage in growing Iran-Russia space cooperation.
China’s core artificial intelligence (AI) industry is projected to surpass 1.2 trillion yuan in 2025 (about $170 billion), up from more than 900 billion yuan in 2024, according to a new industry assessment.
Time Magazine has chosen the creators behind artificial intelligence as its 2025 Person of the Year, highlighting the technology’s sweeping impact on global business, politics and daily life.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment