Article ID: 93ed31fa0d31e69dd3368dd441b27ec73eee53efe104e28ad99c9d53feedc9a9
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URL: https://www.businessinsurance.com/musk-loses-bid-to-dismiss-sec-lawsuit-over-twitter-stake/
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Musk loses bid to dismiss SEC lawsuit over Twitter stake - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Musk loses bid to dismiss SEC lawsuit over Twitter stake Elon Musk D&O , General liability Feb 4, 2026 (Reuters) — A federal judge on Tuesday rejected Elon Musk’s bid to dismiss a U.S. Securities and Exchange Commission lawsuit that claimed he waited too long to disclose his purchases of Twitter shares in 2022. U.S. District Judge Sparkle Sooknanan in Washington, D.C., said none of Musk’s arguments warranted a dismissal, including his claim that the SEC overreached in order to punish him for criticizing the agency. Lawyers for Musk did not immediately respond to requests for comment. An SEC spokesperson declined to comment. The SEC sued Musk in January 2025, saying his 11-day delay in revealing his initial 5% Twitter stake in late March and early April 2022 let him buy more than $500 million of shares at artificially low prices. It wants Musk to repay the $150 million he allegedly saved at the expense of unsuspecting investors, plus a civil fine. Musk has called the delay inadvertent. He also said the SEC case amounted to “selective enforcement” of federal securities laws, designed to target him for criticism of “government overreach” that is protected speech under the U.S. Constitution’s First Amendment. Musk also called a $150 million payout an excessive fine that violates the Constitution’s Eighth Amendment, dwarfing the $100,000 penalty the SEC has sought in similar cases. The SEC requires shareholders to disclose within 10 calendar days when they reach 5% ownership in order to protect investors who might otherwise be kept in the dark and sell their own stock. In a 45-page decision, Sooknanan said that requirement reflects the intent of Congress to stop investors from buying shares cheaply while they pursue control of a company. “The court does not doubt that Mr. Musk would prefer to avoid having to disclose information that might raise stock prices while he makes a play for corporate control,” the judge wrote. “But the balance Congress struck … does not violate the First Amendment.” Musk bought Twitter for $44 billion in October 2022 and renamed it X. 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