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In an ongoing legal battle between Elon Musk and the US Securities and Exchange Commission (SEC), Musk’s lawyers have filed a motion to dismiss a lawsuit alleging he failed to disclose his acquisition of Twitter shares promptly.
The lawsuit, filed by the SEC in January, claims that Musk’s delayed disclosure allowed him to purchase a substantial number of shares at “artificially low prices,” resulting in a saving of approximately $150 million.
The SEC’s complaint centres on a rule requiring investors to disclose within 10 days if their holdings in a company exceed 5%.
The regulator claims Musk crossed this threshold by March 14, 2022, but did not make the required disclosure until April 4, 2022, 21 days after the fact. The SEC asserts this delay caused “substantial economic harm” to investors who sold their shares during this period at a reduced value.
Musk’s legal team, however, has characterized the lawsuit as “a waste of this Court’s time and taxpayer resources.” In their filing, they argue that the SEC has not proven any investor was harmed and that the alleged error was a late filing of a single form that was corrected as soon as it was discovered.
The lawyers also accused the SEC of a “relentless pursuit” and targeting Musk for his public criticisms of government overreach. They pointed to other investigations by the agency as evidence of this selective enforcement. The SEC has declined to comment on the matter.
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