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Musk Seeks Dismissal of SEC Lawsuit Over Twitter Stake Disclosure

By  |  August 31, 2025
Musk Seeks Dismissal of SEC Lawsuit Over Twitter Stake Disclosure

Elon Musk has asked a federal judge to dismiss a lawsuit brought by the U.S. Securities and Exchange Commission (SEC), which alleges he failed to timely disclose his stake in Twitter in 2022. According to a Reuters report, the regulator claims Musk’s 11-day delay in announcing his 5% ownership allowed him to quietly acquire additional shares at favorable prices, generating savings of about $150 million at the expense of other investors.

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    In a filing submitted Thursday night in Washington, D.C., Musk argued that the delay was not intentional and that he disclosed his growing stake as soon as his legal team advised him of the requirement. Per a Reuters account, he noted that he revealed his 9.2% holding on April 4, 2022, one business day after confirming the filing obligations through his wealth manager and attorneys.

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    The SEC has asked the court to compel Musk to return the alleged $150 million windfall and impose a civil penalty. Musk countered that the fine sought by regulators was excessive, citing constitutional grounds under the Eighth Amendment. He said the agency’s demand dwarfs penalties in comparable cases, which have typically involved fines closer to $100,000.

    Related: Musk’s X Corp Hit With Antitrust Lawsuit From Startup Eliza Labs

    Musk accused the SEC of “selective enforcement,” claiming the action was motivated by his past criticism of the agency. “There is no ongoing violation. There is no intent. There is no harm,” he wrote, adding that the case wastes judicial resources and taxpayer money. The SEC, in its own filing on Friday, maintained that intent was irrelevant, arguing that Musk violated key disclosure rules designed to protect investors.

    The Tesla and SpaceX chief has clashed with the SEC before. In 2018, the agency sued him over tweets about potentially taking Tesla private, resulting in a settlement that included a $20 million fine and oversight of some of his social media posts. According to Reuters, the current case against Musk was filed in January and is titled SEC v. Musk, U.S. District Court, District of Columbia, No. 25-00105.

    Musk went on to acquire Twitter outright for $44 billion in October 2022, later rebranding the platform as X.

    Source: Reuters