Internet Musk cannot have lawsuit over Twitter takeover dismissed
Elon Musk has not been able to get rid of a lawsuit filed by the US Securities and Exchange Commission in connection with his share purchases in the takeover of Twitter in 2022. His lawyers argued that the SEC had only applied the law selectively.
04.02.2026, 01:37
SDA
In addition, Musk's lawyers argued that the lawsuit attacked his right to freedom of expression. However, the competent judge saw no reason to dismiss the case.
The SEC (Securities and Exchange Commission) accuses Musk of not making public in good time that his shareholding exceeded the five percent mark when buying Twitter shares. This enabled him to buy more shares more cheaply. After the takeover, he transformed Twitter into his online platform X.
SEC: 150 million dollars saved through breach of rules
The authority analyzed Musk's purchases and came to the conclusion that he had saved more than 150 million dollars as a result of the delayed mandatory disclosure. The shareholders who sold their shares to him during this period, on the other hand, had suffered financial losses. The SEC is demanding that Musk repay the sum - plus an additional penalty.
The tech billionaire began buying up Twitter shares on the market in early 2022. In the complaint, the SEC points out that his stake reached five percent on March 14, 2022. According to US rules, he should have made this public within ten calendar days. However, Musk only announced on April 4 - eleven days too late - that he already held nine percent. The share price subsequently jumped by 27 percent, as the SEC pointed out.
Twitter became X
Musk spent a total of around 44 billion dollars on the purchase of Twitter, which was completed in October 2022. He sold his shares in the electric car manufacturer Tesla, which he manages, for the majority of the sum. Musk also took out loans of around twelve billion dollars.
