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Judge Rejects Elon Musk’s Bid to Move SEC Lawsuit From Washington to Texas

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A U.S. federal judge has denied Elon Musk’s request to move a Securities and Exchange Commission (SEC) lawsuit from Washington, D.C. to Texas, rejecting his claim that the capital’s court location was overly burdensome given his packed schedule.

Judge Sparkle Sooknanan ruled on Thursday that while she acknowledges Musk’s demanding workload, his “considerable means” and frequent travel make Washington an appropriate venue. She also noted that Musk spends at least 40% of his time outside Texas, including significant periods in the capital, where he recently led the Department of Government Efficiency.

The judge emphasized that Texas courts face heavier caseloads, while her court could handle the matter with “reasonable alacrity.” Musk’s argument centered on his claim that he works 80 or more hours per week, often sleeping at his office or factories, and that defending himself in Washington would cause “substantial burdens.”

The SEC lawsuit, filed in January, accuses Musk of failing to timely disclose his acquisition of a 5% stake in Twitter (now X) in early 2022. The 11-day delay, according to the SEC, allowed him to buy over $500 million worth of shares at artificially low prices, saving him an estimated $150 million. The agency seeks a civil fine and the forfeiture of those gains, while Musk is attempting to have the case dismissed.

Musk, whose fortune reportedly surpassed $500 billion this week, resides in Austin, Texas, where his major companies—Tesla, SpaceX, and The Boring Company—are headquartered. He had also proposed moving the case to Manhattan, where former Twitter shareholders have filed a related lawsuit, but that request was likewise denied.

The case, titled SEC v. Musk, will proceed in the U.S. District Court for the District of Columbia under docket number 25-00105, setting the stage for another high-profile courtroom battle involving one of the world’s most controversial billionaires.

Musk’s xAI Acquires X, Valuing Social Media Platform at $33 Billion

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Elon Musk’s artificial intelligence company, xAI, has acquired X (formerly Twitter) in a deal that values the social media platform at $33 billion. This acquisition also boosts the valuation of xAI to $80 billion, with plans to leverage the combined assets, including data, models, and computing resources, to enhance xAI’s chatbot, Grok.

Musk, who also leads Tesla and SpaceX, emphasized the synergy between xAI and X, stating that the futures of both companies are now intertwined. While the specifics of the deal, including leadership integration and potential regulatory scrutiny, remain unclear, it marks a significant consolidation of Musk’s companies under his leadership.

Saudi Arabian investor Prince Alwaleed bin Talal, a major stakeholder in both X and xAI, welcomed the deal, estimating that the value of his investments would reach between $4 billion and $5 billion. Despite Musk not seeking investor approval beforehand, sources indicate that the deal is viewed as part of Musk’s strategy to consolidate his influence and management at his companies.

xAI, which competes with major players like OpenAI and China’s DeepSeek, has been expanding rapidly, especially in AI infrastructure, with its supercomputer “Colossus” in Memphis touted as the largest in the world. The merger with X could provide xAI with more avenues for distributing its AI products, tapping into a real-time feed of user-generated data.

Elon Musk Faces Fraud Lawsuit Over Delayed Twitter Stake Disclosure

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Elon Musk must face a fraud lawsuit after a U.S. judge ruled that shareholders sufficiently alleged that he defrauded them by delaying the disclosure of his Twitter stake, now known as X. U.S. District Judge Andrew Carter in Manhattan rejected Musk’s attempt to dismiss the case, which was brought by former Twitter shareholders, including the Oklahoma Firefighters Pension and Retirement System.

The lawsuit claims that Musk’s delayed SEC filing on his initial 5% Twitter stake, which was not disclosed until 11 days after the March 24, 2022, deadline, caused shareholders to sell their stocks at artificially low prices, ultimately costing them more than $200 million. Musk’s eventual filing revealed that he had acquired a 9.2% stake, which sent Twitter shares up by 27% in early April 2022.

Judge Carter found that Musk’s filing and his tweets about potentially creating a Twitter rival or altering the platform’s logo could have misled investors into thinking Musk was making a “passive” investment and did not intend to take over the company. While some claims were dismissed, the case will proceed to explore whether Musk’s actions were fraudulent.