Gold prices just lower; monthly gains on track
Updates with additional context on earlier lawsuits
Investing.com-- Elon Musk asked a federal judge to dismiss the U.S. Securities and Exchange Commission’s civil lawsuit over his 2022 accumulation of Twitter stock, arguing the regulator’s case over a delayed disclosure fails as a matter of law.
In a motion filed on Thursday, Musk said the SEC overreached in suing him for allegedly waiting past the then-required 10 days to report surpassing a 5% stake, a delay the agency says let him keep buying shares at lower prices before revealing his position.
The case, filed in Washington, D.C., centers on whether Musk’s March–April 2022 filings complied with the Securities Exchange Act.
The SEC’s January complaint said Musk’s late notice saved him at least $150 million and that he initially filed a form reserved for passive investors despite actively engaging with Twitter’s management.
Musk ultimately bought the platform for $44 billion in October 2022 and renamed it X.
Separately, a federal judge in March allowed a shareholder lawsuit claiming Musk’s delay defrauded former Twitter investors to proceed, underscoring the legal scrutiny still trailing the takeover.
The case has revived memories of Musk’s earlier clashes with regulators, including the high-profile 2018 “funding secured” episode. At the time, Musk tweeted that he was considering taking Tesla Inc (NASDAQ:TSLA) private at $420 a share, sending markets into turmoil.
The SEC sued him for securities fraud, leading to a settlement in which Musk stepped down as Tesla chairman and paid a $20 million fine.
Despite the ongoing legal battles, X’s valuation has rebounded sharply this year. Investors have warmed to the platform’s turnaround prospects following Donald Trump’s return to the White House in January.
X was valued at $44 billion in March, underscoring the platform’s rebound as Musk’s sway in the Trump administration grew, but their relationship has soured after public feuds.