Home / Business and Economy / Judge Rules Against Musk in Twitter SEC Disclosure Case
Judge Rules Against Musk in Twitter SEC Disclosure Case
4 Feb
Summary
- Judge rejected Musk's attempt to dismiss SEC lawsuit over Twitter share disclosure.
- SEC claims Musk's delay in reporting Twitter stake artificially lowered prices.
- Musk must repay $150 million allegedly saved by delaying disclosure.
A federal judge has denied Elon Musk's request to dismiss a lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The SEC alleges that Musk waited 11 days in early April 2022 to disclose his initial 5% stake in Twitter.
This delay, according to the SEC, allowed Musk to acquire more than $500 million in shares at prices depressed by the lack of public information. The agency is seeking $150 million in alleged savings from Musk, plus a civil fine.
Musk had argued the SEC overreached and that the delay was inadvertent, also claiming the SEC's actions amounted to selective enforcement and an excessive fine violating constitutional protections. The judge, however, upheld the SEC's disclosure requirements, stating they align with Congress's intent to protect investors.
