Elon Musk Served in SEC Lawsuit Over Twitter Stock Disclosure Delay Amid Regulatory Power Shift
Elon Musk was officially served with a court summons last week in connection with a Securities and Exchange Commission (SEC) lawsuit, which accuses him of failing to properly disclose his Twitter stock purchases in 2022 prior to launching his $44 billion bid to acquire the company.
According to a legal filing published Thursday, the civil summons was delivered on March 14 at the SpaceX headquarters in Brownsville, Texas. The process server reported being met by resistance from SpaceX security, who refused to accept the documents and warned that he was trespassing. As a result, the server left the documents on the ground while security guards reportedly took photos of him and his vehicle.
The lawsuit centers on Musk’s acquisition of a significant stake in Twitter—now rebranded as X. The SEC alleges that Musk crossed the 5% ownership threshold, which by law requires disclosure within 10 calendar days. The complaint, filed in January in U.S. District Court in Washington, D.C., claims that Musk failed to meet this deadline, withholding material information and gaining an unfair financial advantage. As a result, Musk allegedly underpaid by at least $150 million for shares acquired after the disclosure deadline.
Musk has until April 4 to respond to the court, either by filing a legal answer or a motion to dismiss the case. Neither Musk, the SEC, nor his attorney Alex Spiro of Quinn Emanuel Urquhart & Sullivan have issued public statements regarding the matter.
This latest legal challenge comes as regulatory oversight faces headwinds under President Donald Trump’s current administration. The White House has significantly reduced staffing and funding for independent agencies like the SEC. Reports indicate that employees have been offered buyouts of $50,000 to resign or retire before March 21.
Additionally, the administration has reversed a longstanding SEC policy that empowered the agency’s Director of Enforcement to issue formal investigative orders. Under the new rules, such actions now require approval from a full commission vote—potentially slowing the pace of future investigations like the one involving Musk.
This isn’t Musk’s first run-in with the SEC. In 2018, the Tesla CEO settled securities fraud charges related to misleading tweets about taking Tesla private. That settlement cost both Musk and Tesla $20 million each and required Musk to step down as chairman of Tesla’s board for a period of time.
Following his Twitter acquisition, Musk has used the platform to support Republican candidates, including President Trump. Reports suggest Musk contributed approximately $290 million toward Trump’s campaign efforts and currently serves as a senior advisor within the administration.
The evolving legal battle between Musk and the SEC unfolds at a time of heightened scrutiny over transparency, market fairness, and the role of federal regulatory power in high-profile corporate deals.
