The US Securities and Exchange Commission (SEC) has extended Elon Musk’s deadline to respond to its lawsuit alleging he failed to disclose his Twitter stock purchases on time.

Musk now has until August 29, 2025, to file his response, according to a motion filed on July 17, 2025, in US District Court in Washington.

The SEC’s lawsuit, filed in January, accuses Musk of violating securities laws by not properly disclosing his acquisition of a major stake in Twitter in 2022.

The agency claims this delay allowed Musk to underpay by at least US$150 million for shares purchased after the required disclosure date.

Musk later acquired Twitter for US$44 billion and subsequently renamed the platform to X.

The SEC is seeking a jury trial and requesting that Musk pay disgorgement of alleged unjust profits along with a civil penalty.

Musk’s legal team has denied the allegations, describing the lawsuit as unfounded.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Mandatory disclosure violations remain a top SEC enforcement priority

The Musk case aligns with the SEC’s ongoing focus on beneficial ownership reporting, which recently led to settlements with 23 entities and individuals for similar violations.

Section 13 of the Securities Exchange Act specifically requires stockholders owning 5% or more of a company to file timely reports on Schedules 13D or 13G, the exact regulation at the center of Musk’s Twitter stock acquisition case1.

This enforcement pattern continues the SEC’s larger trend where disclosure and reporting violations represented the largest category (41%) of all actions against public companies in fiscal year 20242.

The agency’s historic $8.2 billion in financial remedies collected in FY 2024, the highest in SEC history, highlights how aggressively the Commission pursues disclosure violations under its current leadership2.

For context, the Musk complaint seeking “at least $150 million” in disgorgement represents a significantly larger amount than typical disclosure cases, where individual penalties often range from $10,000 to $750,0001.

2️⃣ SEC consistently prioritizes individual accountability in enforcement actions