• Elon Musk files to dismiss SEC lawsuit regarding his Twitter stock disclosures.
• He is accused of delaying the announcement of his stake to profit from lower share prices.
• Musk claims the SEC case is politically motivated and an overreach of authority.
• The lawsuit demands repayment of profits and fines due to the alleged disclosure delays.
• Musk's legal team argues there was no intent to mislead investors or cause harm.

Elon Musk has filed a motion to dismiss a lawsuit from the U.S. Securities and Exchange Commission (SEC), which claims he failed to timely disclose his stake in Twitter, now known as X. The SEC alleges that Musk's 11-day delay in revealing he had acquired over 5% of Twitter shares allowed him to save approximately $150 million by purchasing these shares at artificially low prices before his disclosure on April 4, 2022, when he owned a 9.2% stake, according to Reuters.

Musk's legal team contends that the lawsuit is not only legally flawed but also politically motivated, arguing that the SEC's enforcement approach disproportionately targets him. They assert that Musk's actions did not intentionally mislead investors and that he promptly disclosed his ownership upon seeking legal counsel regarding disclosure requirements. His attorneys also noted, "There is no ongoing violation. There is no intent. There is no harm," highlighting their view that the lawsuit is a misuse of judicial resources, according to India Times and BBC.

The SEC's complaint, filed in January 2023, accused Musk of violating federal securities laws, which mandate that investors disclose their holdings when they exceed 5% within 10 calendar days. Musk's filing follows a series of legal challenges from the SEC, stemming from previous disputes, including a 2018 lawsuit regarding his tweets about potentially taking Tesla private. He has been a vocal critic of the SEC, recently labeling the agency a "totally broken organisation," according to Reuters and BBC.

In addressing the impact of the alleged violation, the SEC maintains that Musk's late disclosure could have harmed investors who sold their shares under false pretenses, indicating that such reporting requirements are crucial for market integrity. Musk's counter-argument stresses that he corrected his filings as soon as possible and believes the penalties sought, including a $150 million fine, are excessive compared to those imposed on other individuals in similar cases, pointing out the SEC's "selective enforcement," according to Reuters and BBC.