SAN FRANCISCO, Aug 29 — Elon Musk has asked a federal judge to dismiss a United States (US) Securities and Exchange Commission lawsuit claiming he waited too long to disclose his purchases of Twitter shares in 2022, accusing the regulator of overreaching to punish him for criticising it.
The SEC sued the billionaire in January, saying his 11-day delay in revealing his initial five per cent Twitter stake let him buy more than US$500 million (RM2.11 billion) worth of shares at low prices, saving himself US$150 million (RM633.7 million) at unsuspecting investors' expense.
It wants Musk, the world's richest person, to repay those savings and pay a civil fine.
In a filing late on Thursday night in the Washington, D.C. federal court, Musk maintained that the delay was inadvertent.
He added that he promptly disclosed what had become a 9.2 per cent Twitter stake on April 4, 2022, one business day after his wealth manager checked with lawyers about filing requirements.
Musk bought all of Twitter for US$44 billion (RM185.8 billion) in October 2022 and renamed it X. His businesses also include electric vehicle maker Tesla and rocket company SpaceX.
The SEC's "selective enforcement" of its securities laws "reveals an agency targeting an individual for his protected criticism of government overreach," Musk said.
"There is no ongoing violation. There is no intent. There is no harm.
"Simply put, this action is a waste of this court's time and taxpayer resources," he said.
Musk also called a US$150 million payout an excessive fine that violates the US Constitution's 8th Amendment and dwarfs the US$100,000 (RM422,360) penalty the SEC has sought in similar cases.
An SEC spokesperson declined to comment on Musk's filing.
The SEC requires shareholders to disclose within 10 calendar days when they reach five per cent ownership, saying the rule protects investors who might otherwise be kept in the dark and sell their own stock.
In a court filing on Friday, the SEC said Musk's intent did not matter, and he should be liable for violating "important public reporting requirements under the federal securities laws."
Musk has long feuded with the SEC.
This included when the regulator sued him in 2018 after he said on Twitter that he might take Tesla private and had secured funding.
He settled that lawsuit by paying a US$20 million (RM84.49 million) civil fine, agreeing to let Tesla lawyers review some Twitter posts in advance, and giving up his role as Tesla's chairman.
The current SEC lawsuit was filed on January 14, six days before Republican President Donald Trump took office and made Musk an adviser to slash the federal workforce and spending.
Musk announced his departure from the Department of Government Efficiency in late May.
The case is SEC v Musk, U.S. District Court, District of Columbia, No. 25-00105.
