Elon Musk Granted Extension to Respond to SEC Lawsuit Over Twitter Stake Disclosure

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.