Elon Musk Fails to Move SEC Lawsuit to Texas
Elon Musk attempted to relocate an SEC lawsuit regarding his late disclosure of a Twitter stake to Texas but was denied by a Washington, D.C. judge. The lawsuit alleges Musk delayed disclosing a major Twitter stake, securing shares at lower prices, and seeks financial penalties.
Elon Musk's efforts to transfer a Securities and Exchange Commission lawsuit from Washington, D.C. to Texas have been thwarted by U.S. District Judge Sparkle Sooknanan. The lawsuit centers on Musk's late disclosure of his increasing Twitter stake, allowing him to purchase shares at supposedly inflated prices.
Despite Musk's claims of a hectic schedule, Judge Sooknanan noted Musk's significant resources and frequent travels beyond Texas. Citing case management concerns, she asserted her ability to process the case expediently and emphasized Texas courts' heavier workloads.
The SEC, in its lawsuit from January, accuses Musk of delaying his 5% Twitter stake disclosure in early 2022, facilitating the acquisition of shares at lower costs and allegedly saving $150 million. While Musk aims to dismiss the case, he is served civil penalties for shareholder expenses post Twitter acquisition.
(With inputs from agencies.)
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