Elon Musk granted six weeks extension in SEC lawsuit over Twitter stake disclosure

Published 05/06/2025, 18:30
© Reuters

Investing.com -- The U.S. Securities and Exchange Commission (SEC) has extended the deadline for Elon Musk, the world’s wealthiest individual, to respond to its civil lawsuit. The lawsuit accuses Musk of delaying the disclosure of his substantial stake in Twitter in 2022, a company he later acquired and rebranded as X.

According to a document filed in a federal court in Washington, D.C., both the SEC and Musk have mutually agreed to postpone the deadline for Musk’s reply from June 6 to July 18. The parties have deemed this extension "reasonable and in the interest of conserving judicial resources."

The SEC alleges that Musk’s 11-day delay in revealing his initial 5% stake in Twitter enabled him to purchase over $500 million of the company’s shares at artificially deflated prices. This action, according to the SEC, was detrimental to unsuspecting investors. The lawsuit by the SEC seeks to compel Musk to pay a civil penalty and surrender profits that he did not rightfully earn.

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