Elon Musk hopes to get rid of the allegations he drove to twitter investors

Elon Musk’s lawyers are looking to obtain a trial of the American Securities and Exchange commission (CSA) against the CEO of Tesla and the owner of X. The case, deposited just before President Donald Trump takes up his duties this year, focuses on the purchases of Musk of Twitter action before his social network control in 2022.

The SEC lightens that Musk has deceived investors by quietly raising more than a 5% stake in Twitter without disclosing it within the regulated period. According to the law, once someone reaches this threshold, it is supposed to file documents within 10 days to inform the rest of the market. Musk didn’t do it.

According to the agency, Musk has exceeded the deadline of 11 days, giving itself additional time to continue to buy cheap stocks. This meant that he was able to buy more actions at a discount before the public knows what he was doing, and the course of Twitter shares inevitably increased when the news became public. He would end up buying the whole platform for $ 44 billion later that year and would rename him like X.

Musk lawyers asked a Federal Washington, DC lawyer on Thursday, to launch the case, calling it “loss of time and resources for taxpayers”. They also said that the trial was part of the “incessant prosecution” of the SEC, stressing that the regulators have submitted it to investigations for almost a decade.

“The dry does not allege that Mr. Musk acted intentionally, deliberately, voluntarily or even imprudent,” said the court of the court. “The SEC does not allege that Mr. Musk caused investors’ damage. On the contrary, the SEC lightens that Mr. Musk late has only one beneficial property form three years ago, and fully corrected any alleged error immediately after his discovery.”

The legal fight occurs while the links formerly musk farms with Trump have embittered. When the SEC first filed the trial for the first time, Musk was one of Trump’s greatest allies, having paid hundreds of millions in his campaign in 2024. At the time, the republican commissioner of the SEC, Mark Uyeda, who would later serve as the acting president of the Sec, even asked the lawsuing to declare that the case was not politically motivated, reported Bloomberg.

After Trump took office, Musk played a central role in a whirlwind of the radical government as head of the government’s efficiency department (DOGE), to later have a very public who falls with Trump.

How many investors have lost?

According to the dry, Musk kept the market in ignorance while secretly buying Twitter shares. He waited 11 days after the deadline before finally disclosing his participation on April 4, 2022. Twitter shares subsequently jumped 27%. Until then, he had already spent more than $ 500 million in additional shares.

“Because Musk failed to disclose his beneficial property in a timely time, he was able to make these purchases from the public without distrust at artificially low prices,” said the complaint, adding that he underlined the sellers of more than $ 150 million.

The complaint also alleges that investors who sold Twitter shares during this period have done so to a substantial discount, undergoing “substantial economic damage”.

The dry did not immediately respond to a request for comments from Gizmodo.