Billionaire Elon Musk filed a motion on Thursday to dismiss the US Securities and Exchange Commission’s civil lawsuit over his delayed Twitter stock disclosure in 2022. The SEC filed the lawsuit in January, claiming Musk violated federal securities law by waiting 11 days beyond the required timeframe to report his purchase of more than 5% of Twitter’s common shares. The agency alleges this delay allowed Musk to buy additional shares at artificially low prices. Musk’s lawyers argue the case should not have been brought, stating that the billionaire corrected any error immediately upon discovery. They characterized the action as targeting Musk “for his protected criticism of government overreach.” The motion emphasizes that the SEC does not allege intentional, deliberate, willful, or reckless behavior by Musk. According to BBC, when the SEC filed its lawsuit in January, Musk responded on social media, calling the regulator a “totally broken organization” and accusing it of wasting time on minor issues while actual crimes go unpunished. His lawyers echoed this sentiment in Thursday’s filing, calling the lawsuit “a waste of this Court’s time and taxpayer resources.” Musk claims SEC harassment over Twitter criticism In their formal response, Musk’s attorneys accused the SEC of conducting a “relentless pursuit” against their client. They argued that the Commission’s selective enforcement against Musk reveals an agency targeting an individual for criticizing government actions. The filing claims the SEC is seeking monetary relief more than 1,500 times larger than penalties imposed on similar cases. The lawsuit centers on SEC rules requiring investors to disclose their holdings within 10 calendar days after acquiring more than 5% of a company’s stock. According to the complaint, Musk should have disclosed his Twitter stake by March 24, 2022, but did not file the required form until April 4, 2022. During this 11-day period, the SEC alleges Musk purchased over $500 million worth of additional Twitter shares. Totally broken organization. They spend their time on shit like this when there are so many actual crimes that go unpunished.— Elon Musk (@elonmusk) January 15, 2025 The agency claims that when Musk finally disclosed his 9.2% stake in Twitter, the company’s stock price jumped more than 27%. This price increase, according to the SEC, demonstrates that Musk’s undisclosed ownership was material information that affected the stock’s value. The lawsuit seeks civil fines and disgorgement of the alleged $150 million in profits from the delayed disclosure. Musk’s legal team maintains that the billionaire stopped purchasing additional Twitter shares and filed his disclosure one business day after his wealth manager consulted securities counsel about filing requirements. Musk has had a turbulent relationship with the SEC, including a previous 2018 case over his Twitter posts about potentially taking Tesla private with “funding secured.” The current lawsuit was filed on January 14, just six days before President Donald Trump took office and appointed Musk as a special adviser for government efficiency initiatives. The timing has raised questions about the political motivations behind the case, with Musk’s supporters arguing it represents regulatory overreach. The SEC has not yet responded to requests for comment regarding Musk’s motion to dismiss.