too long to disclose his purchase of Twitter shares in 2022, accusing the regulator of overreaching in order to punish him for criticizing it.
The SEC sued the billionaire in January, reporting that his 11-day delay in revealing his initial 5%Twitter stake let him buy more than $500 million worth of shares at low prices, saving himself $150 million at unsuspecting investors’ expense.
It wants Musk, the world’s richest person, to repay those savings and pay a civil fine. More so, in a filing late on Thursday night in Washington, D.C., a federal court, Musk maintained that the delay was not intentional.
He also said he promptly disclosed what had become a 9.2% Twitter stake on April 4, 2022, one business day after his wealth manager checked with lawyers about filing requirements.
Musk also bought all of Twitter's stake for $44 billion in October 2022 and renamed it X. His business also includes electric vehicle maker Tesla and rocket company SpaceX.
The SEC’s “selective enforcement” of its securities laws “reveals an agency targeting an individual for his protected criticism of government overreach” Musk reported.
"There is no ongoing violation. There is no intent. There is no harm," he added. "Simply put, this action is a waste of this court's time and taxpayer resources."
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Musk also called a $150 million payout an excessive fine that violates the US Constitution’s 8th Amendment and dwarfs the $100,000 penalty the SEC has sought in similar cases.
An SEC spokesperson has also declined to comment on Musk’s filing. The SEC also requires shareholders to disclose within 10 calendar days when they reach 5% ownership, saying that the rule protects investors who might otherwise be kept in the dark and sell their own stock.
In a court filing held on Friday, the SEC said that Musk’s intent didn’t matter, and that he should be liable for violating "important public reporting requirements under the federal securities laws."
Musk has also been in a feud with the SEC.
This included when the regulator sued him in 2018 after he reported on Twitter that he might take Tesla private and had secured funding.
He settled that lawsuit by paying a $20 million civil fine, agreeing to let Tesla lawyers review some Twitter posts in advance, and giving up his role as Tesla’s chairman, reported Reuters.
He also said he promptly disclosed what had become a 9.2% Twitter stake on April 4, 2022, one business day after his wealth manager checked with lawyers about filing requirements.
Musk also bought all of Twitter's stake for $44 billion in October 2022 and renamed it X. His business also includes electric vehicle maker Tesla and rocket company SpaceX.
The SEC’s “selective enforcement” of its securities laws “reveals an agency targeting an individual for his protected criticism of government overreach” Musk reported.
"There is no ongoing violation. There is no intent. There is no harm," he added. "Simply put, this action is a waste of this court's time and taxpayer resources."
Subscribe to our newsletter
Musk also called a $150 million payout an excessive fine that violates the US Constitution’s 8th Amendment and dwarfs the $100,000 penalty the SEC has sought in similar cases.
An SEC spokesperson has also declined to comment on Musk’s filing. The SEC also requires shareholders to disclose within 10 calendar days when they reach 5% ownership, saying that the rule protects investors who might otherwise be kept in the dark and sell their own stock.
In a court filing held on Friday, the SEC said that Musk’s intent didn’t matter, and that he should be liable for violating "important public reporting requirements under the federal securities laws."
Musk has also been in a feud with the SEC.
This included when the regulator sued him in 2018 after he reported on Twitter that he might take Tesla private and had secured funding.
He settled that lawsuit by paying a $20 million civil fine, agreeing to let Tesla lawyers review some Twitter posts in advance, and giving up his role as Tesla’s chairman, reported Reuters.
