Elon Musk Files Motion To Dismiss SEC Lawsuit Over 2022 Twitter Stake Disclosure Violation

Elon Musk filed a motion Thursday to dismiss the Securities and Exchange Commission’s civil lawsuit alleging he failed to disclose his Twitter, now X, stake on time in 2022. The SEC claims Musk violated securities law by waiting 11 days past the deadline to report crossing the 5% ownership threshold, during which he purchased more than $500 million in additional shares before disclosing his 9.2% stake. Musk’s attorneys argued he stopped buying shares after consulting counsel, filed disclosure one business day later, and fully corrected the issue with no ongoing violation. They characterized the case as targeting Musk for his criticism of government overreach. The SEC is seeking civil fines and disgorgement of profits. This case follows the agency’s 2018 lawsuit over Musk’s “funding secured” tweets about taking Tesla private.