Judge Rejects Elon Musk's Dismissal Bid in SEC Lawsuit

A federal judge denied Elon Musk's request to dismiss an SEC lawsuit alleging he delayed disclosing Twitter share purchases. The SEC claims Musk's delay allowed him to buy shares at low prices, saving $150 million. Musk argues the lawsuit targets his free speech criticism of government overreach.

A federal judge has denied Elon Musk's attempt to dismiss a lawsuit from the U.S. Securities and Exchange Commission (SEC), which accused him of postponing the disclosure of his 2022 Twitter share purchases. U.S. District Judge Sparkle Sooknanan ruled against Musk's arguments for dismissal, which included claims of SEC overreach.

The SEC launched the lawsuit in January 2025, arguing that Musk's 11-day delay in disclosing his 5% Twitter stake allowed him to acquire shares valued at $500 million for a reduced price. The agency seeks the repayment of $150 million and a civil fine. Musk contends the delay was unintentional and characterizes the lawsuit as an attempt to target his criticisms of government actions.

Judge Sooknanan emphasized the SEC's requirement for disclosures within 10 days to protect investors from potentially unfair trading advantages. She argued this rule reflects Congressional intent to safeguard investors. Despite previous legal battles with the SEC, Musk continues his business ventures, including acquiring Twitter and merging his company xAI with SpaceX.

(With inputs from agencies.)