News Summary
A federal judge has denied Elon Musk’s motion to transfer a lawsuit from the SEC from Washington, D.C. to Texas, citing his means and travel schedule. The lawsuit accuses Musk of delaying the disclosure of his stake in Twitter, potentially harming investors. The SEC is seeking a civil fine and forfeiture related to the case. Musk’s legal team argued that the lawsuit is politically motivated, while the judge emphasized the importance of proceeding with the case in D.C.
Washington, D.C. – A federal judge has denied Elon Musk’s request to transfer a Securities and Exchange Commission (SEC) lawsuit from Washington, D.C. to Texas. U.S. District Judge Sparkle Sooknanan rejected the motion on Thursday, addressing Musk’s claims about the “substantial burdens” posed by his travel schedule.
Musk, regarded as the world’s richest individual with a fortune exceeding $500 billion, argued that his “incredibly busy” schedule would make attending court in Washington, D.C. burdensome. The judge acknowledged Musk’s convenience concerns but emphasized that he has “considerable means” and stated he spends a significant amount of his time—at least 40%—outside Texas, where he resides.
The SEC lawsuit, initiated in January 2025, accuses Musk of delaying the disclosure of his initial 5% stake in Twitter in early 2022. The allegations contend that Musk’s 11-day delay in announcing his stake allowed him to purchase over $500 million in shares at artificially low prices, causing harm to other investors. In light of these claims, the SEC is pursuing a civil fine against Musk and seeks to have him forfeit $150 million, which he allegedly saved at the expense of other investors.
Musk, who reportedly dedicates over 80 hours a week to work and often sleeps in his office or at his factories, argued through his legal team that litigating in Washington, D.C., would impose undue burdens on him. The judge also pointed out that Texas judges generally manage larger caseloads than those in her court in D.C. and committed to moving the case forward with “reasonable alacrity.”
In addition to his failed request to transfer the case to Texas, Musk’s team proposed moving the lawsuit to Manhattan, where former Twitter shareholders are currently suing him. This request was also denied by Sooknanan. The ruling has important procedural implications for the SEC, which may benefit from maintaining the case in Washington, D.C.
The SEC alleges that Musk’s late disclosure compromised the transparency and fairness of securities markets, a serious accusation for an individual of Musk’s stature. His attorneys have characterized the lawsuit as baseless and politically motivated, arguing it wastes valuable court resources. Musk has also faced scrutiny from regulatory agencies in both the U.S. and the UK regarding the management of his companies, including Tesla, SpaceX, and the Boring Company, which are all based in Austin, Texas.
This latest legal setback for Musk highlights ongoing tensions between influential figures in the tech world and regulatory authorities. As developments unfold in this high-profile lawsuit, the implications for both Musk and the broader investment community remain to be seen.
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Additional Resources
- Al Jazeera: Judge Denies Musk’s Bid
- Google Search: Elon Musk SEC lawsuit
- Cryptopolitan: Musk’s Push to Transfer Twitter Probe
- Wikipedia: Elon Musk
- Reuters: SEC Seeks More Time from Musk
- Encyclopedia Britannica: Securities Market
- NBC News: Elon Musk’s Legal Troubles
- Google News: Elon Musk
- Washington Post: Musk’s Political Interactions
- Google Scholar: Elon Musk SEC lawsuit
Author: STAFF HERE WASHINGTON DC
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