Judge Denies Musk Motion to Dismiss SEC Twitter Suit

A federal judge in Washington, D.C., has denied Elon Musk's motion to dismiss a lawsuit brought by the U.S. Securities and Exchange Commission, advancing a case that accuses the billionaire of delaying the disclosure of his growing stake in Twitter in 2022. The ruling, issued Tuesday by U.S. District Judge Sparkle Sooknanan, clears the way for the litigation to proceed and underscores the enforcement of market transparency rules.

The SEC filed the civil suit in January 2025, alleging that Musk crossed the 5 percent ownership threshold in Twitter stock on March 14, 2022, but waited until April 4 to publicly disclose it, an 11-day delay. Regulators claim this lapse allowed Musk to acquire more than 70 million additional shares at artificially depressed prices, saving him approximately $150 million while causing economic harm to other investors who sold their holdings. The agency is seeking $150 million in disgorgement of those profits, plus interest, civil penalties, and an injunction to prevent future violations.

Musk's legal team argued for dismissal on several grounds, including claims that the disclosure requirements under Section 13(d) of the Securities Exchange Act are...