Elon Musk has been granted an additional six weeks by the U.S. Securities and Exchange Commission (SEC) to respond to a civil lawsuit alleging that he delayed disclosing his large stake in Twitter in 2022. The new deadline for Musk’s response is now July 18, extended from the original June 6 date.
The SEC and Musk jointly agreed to the extension in a federal court filing in Washington, D.C., describing the delay as “reasonable and in the interest of conserving judicial resources.”
The SEC’s lawsuit claims that Musk’s 11-day delay in revealing his initial 5% ownership in Twitter allowed him to purchase over $500 million worth of additional shares at artificially suppressed prices, disadvantaging other investors. The agency is seeking a civil penalty and the forfeiture of profits Musk allegedly gained unfairly.