Key Points
- The SEC has extended the deadline for Elon Musk to respond to a lawsuit. The new deadline for Musk’s response is now August 29.
- The lawsuit alleges that Musk illegally delayed disclosing his stock purchases before acquiring Twitter in 2022.
- The SEC claims this delay allowed Musk to save at least $150 million by buying shares at a lower price.
- Regulators are seeking financial penalties, including forcing Musk to give back the money he allegedly saved.
The Securities and Exchange Commission (SEC) has granted Elon Musk another extension to respond to its lawsuit against him. The lawsuit claims he failed to properly disclose his stock purchases before he bought Twitter, which he later renamed X.
According to a court filing on Thursday, the SEC and Musk’s legal team jointly agreed to push the deadline back to August 29. This is the second time the deadline has been extended; it was originally set for June 6 and was later pushed back to July 18.
The SEC filed its lawsuit back in January, accusing the Tesla and SpaceX CEO of violating securities laws in 2022. The agency argues that by not reporting his growing stake in Twitter on time, Musk was able to buy more shares at a lower price. The SEC estimates this saved him at least $150 million.
The regulatory agency is pushing for a jury trial and wants to force Musk to pay back his “unjust enrichment” along with an additional civil penalty. For his part, Musk’s lawyers have called the lawsuit a “sham” and maintain that he has done nothing wrong. Musk eventually purchased Twitter for $44 billion in 2022.
