SEC continuing $150 million lawsuit against Elon Musk over Twitter stock deal

​In January 2025, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Elon Musk, alleging that he failed to disclose his acquisition of Twitter stock in a timely manner during early 2022.

According to the SEC, Musk's delayed disclosure allowed him to purchase additional shares at artificially low prices, resulting in an underpayment of at least $150 million.

By March 14, 2022, Musk had acquired over 5% of Twitter's shares, a threshold that legally requires public disclosure within ten days.

However, he did not file the necessary disclosure until April 4, 2022, 11 days past the deadline.

During this period, Musk continued to purchase more than $500 million worth of Twitter stock.

The SEC contends that this delay deprived investors of important information and led to financial harm for those who sold shares at deflated prices. ​

In response to the lawsuit, Musk's attorney, Alex Spiro, dismissed the allegations, asserting that Musk "has done nothing wrong" and describing the legal action as a "sham."

As of March 31, 2025, both parties have agreed on a timeline for Musk to respond to the SEC's complaint. According to a joint motion filed on that date, Musk has agreed to file his response by June 6, 2025. This agreement aims to conserve judicial resources and expedite the legal process. ​

This lawsuit adds to Musk's history of legal challenges with the SEC. In 2018, he settled fraud charges related to tweets about taking Tesla private, agreeing to pay a $20 million fine and step down as Tesla's chairman for three years. ​

The Securities and Exchange Commission is moving ahead with its $150 million lawsuit against Elon Musk, accusing the billionaire of misleading investors during his 2022 purchase of Twitter stock.

The lawsuit, originally filed in January 2025 in the final days of the Biden administration, alleges that Musk failed to disclose his significant stake in Twitter by the required March 24, 2022 deadline.

By delaying the disclosure, the SEC claims Musk was able to buy shares at a lower price, ultimately saving at least $150 million before the stock price surged 27% after his stake was made public.

Musk, now head of the Department of Government Efficiency, has agreed to respond to the complaint by June 6, pending court approval. The agreement was outlined in a court filing on March 31, 2025, marking the first formal timeline for Musk’s legal team to address the allegations.

In a statement, Musk’s attorney Alex Spiro dismissed the case as baseless, saying, “Elon has done nothing wrong,” and labeling the lawsuit a “sham.”

The case is the latest in a series of legal clashes between Musk and federal regulators. In 2023, the SEC also sued him for refusing to testify about the Twitter acquisition, after he abruptly withdrew from a scheduled interview with the agency.

Despite Musk’s challenge to the validity of the lawsuit’s service, the SEC is pushing forward, maintaining that the tech mogul’s actions violated securities law and harmed investors.