Elon Musk Strikes Back: A Legal Battle Over His Twitter Shares

Elon Musk is at the center of a legal dispute with the U.S. Securities and Exchange Commission (SEC) as he seeks to dismiss a lawsuit that alleges he improperly delayed the disclosure of his substantial investment in Twitter. The SEC claims that Musk’s late filing of ownership regarding his increased stake allowed him to capitalize on approximately $150 million in savings by buying shares at artificially low prices before he eventually purchased the company outright and rebranded it as X.

The SEC asserts that Musk failed to inform them that he had crossed the 5% ownership threshold by March 14, 2022, and did not make the necessary disclosures until April 4, 2022, 21 days later. They’ve characterized his actions as a violation of U.S. securities rules, suggesting that they led to significant economic harm for investors.

In response, Musk’s attorneys have dismissed the lawsuit as a ’waste of the court’s time’, arguing that the SEC has not demonstrated any real intent or ongoing violations, nor has it shown that Musk’s actions harmed investors. They highlighted that he corrected any errors promptly once discovered, and they framed the lawsuit as part of a targeted campaign against Musk due to his outspoken criticism of governmental oversight and regulation.

Musk’s lawyers further criticized the SEC for what they describe as selective enforcement, asserting that the monetary relief sought from Musk is disproportionately larger than that sought from others in similar situations. This case continues to draw attention, underscoring the complexities of shareholder regulations and Musk’s contentious relationship with regulatory bodies.