Musk loses bid to dismiss SEC lawsuit over Twitter stake


FILE PHOTO: Elon Musk attends the U.S.-Saudi Investment Forum in Washington, D.C., U.S., November 19, 2025. REUTERS/Evelyn Hockstein/File Photo

Feb 3 (Reuters) - A ‌federal judge on Tuesday rejected ‌Elon Musk's bid to dismiss a ‌U.S. Securities and Exchange Commission lawsuit that claimed he waited too long to disclose his ‍purchases of Twitter shares ‍in 2022.

Washington, D.C.-based ‌U.S. District Judge Sparkle Sooknanan said Musk's ‍arguments, ​including that the SEC overreached in order to punish him ⁠for criticizing it, did not warrant ‌dismissal.

The SEC sued Musk in January 2025, ⁠saying his ‍11-day delay in revealing his initial 5% Twitter stake let him buy more ‍than $500 million of shares ‌at low prices. It wants Musk to repay the $150 million he allegedly saved at the expense of unsuspecting investors, plus a civil fine.

Musk, the world's richest person, has said the delay was ‌inadvertent, and that the SEC's case amounted to "selective enforcement."

Lawyers for Musk did not immediately ​respond to requests for comment.

(Reporting by Jonathan Stempel in New York; Editing by Will Dunham)

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