OAN Staff Abril Elfi
10:39 AM – Friday, August 29, 2025
Elon Musk has requested a federal judge to dismiss the U.S. Securities and Exchange Commission’s (SEC) civil lawsuit against him in relation to his 2022 acquisition of Twitter stock — arguing that the regulator’s case over a delayed disclosure is legally unfounded.
In a motion submitted on Thursday, Musk argued that the SEC overstepped by suing him for allegedly waiting beyond the then-mandated 10 days to report exceeding a 5% stake — a delay the SEC claims allowed him to buy more shares at lower prices before revealing his holdings.
The SEC’s “selective enforcement” of its securities laws “reveals an agency targeting an individual for his protected criticism of government overreach,” Musk said.
“There is no ongoing violation. There is no intent. There is no harm,” he added. “Simply put, this action is a waste of this court’s time and taxpayer resources.”
The lawsuit, filed in Washington, D.C., focuses on whether Musk’s filings in March and April 2022 complied with the Securities Exchange Act.
The SEC’s January complaint argued that Musk’s late disclosure saved him at least $150 million, and it further accused him of submitting a form meant for passive investors — despite actively engaging with Twitter’s management.
In October 2022, Musk purchased Twitter for $44 billion and rebranded it as X.
Additionally, a federal judge in March permitted a shareholder lawsuit to proceed, alleging Musk’s delay in disclosure defrauded former Twitter investors—highlighting ongoing legal scrutiny of the acquisition.
This case has brought back memories of Musk’s previous clashes with regulators, including the notable 2018 “funding secured” incident, when Musk tweeted about taking Tesla private at $420 per share, causing market turmoil.
The SEC sued Musk for securities fraud, resulting in a settlement where he resigned as Tesla’s chairman and paid a $20 million fine.
In a court filing on Friday, the SEC stated that Musk’s intent didn’t matter, and he should be liable for violating “important public reporting requirements under the federal securities laws.”
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