- A federal judge has denied Elon Musk’s request to move an SEC lawsuit from Washington to Texas.
- The lawsuit concerns an alleged delay in Musk’s disclosure of his stake in Twitter Inc.
- The case will continue in Washington, D.C., as decided by U.S. District Judge Sparkle Sooknanan.
- Twitter, now called X, was acquired by Musk for $44 billion over two years ago.
- The SEC lawsuit was filed in January, shortly before President Donald Trump’s term ended.
A federal judge has rejected Elon Musk‘s effort to transfer a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) from Washington, D.C., to Texas. The case involves allegations that Musk failed to disclose his purchase of a significant stake in Twitter Inc. in a timely manner.
The decision was issued by U.S. District Judge Sparkle Sooknanan, who noted that Musk spends a substantial amount of time outside Texas and has the resources to attend court in Washington. According to the judge, “The Court takes Mr. Musk’s convenience seriously, but it also notes that Mr. Musk has considerable means and spends at least forty percent of his time outside his chosen forum,” as reported by Bloomberg.
Twitter, which has since been rebranded as X and is now part of xAI, was purchased by Musk for $44 billion more than two years ago. The SEC initiated legal action against Musk in January, shortly before the conclusion of President Donald Trump’s administration.
The SEC claims that Musk did not adhere to regulations requiring early disclosure of large purchases of publicly traded company shares. These rules aim to ensure transparency for investors in the market. The case will move forward in Washington, D.C., following the court’s ruling.
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