Elon Musk has filed a motion in federal court seeking to dismiss a lawsuit brought by the U.S. Securities and Exchange Commission (SEC), which alleges that he failed to timely disclose his purchase of Twitter stock.
Essence of SEC Lawsuit Against Musk
The lawsuit, filed on January 14, alleges that Musk violated federal securities law by not disclosing his acquisition of 5% of Twitter shares within the required 10-day window. The SEC claims Musk waited 11 days too long to disclose this information.
Response from Musk's Representative
In their filing, Musk's lawyers described the lawsuit as an overreach, asserting that their client did not purchase any additional shares after reaching the 5% threshold. They noted that Musk revealed his purchase one business day after consulting with securities disclosure experts.
Plans for X as a Super App
Musk aims to transform Twitter, rebranded as X, into a super app that will offer financial services like investment and asset trading. CEO Linda Yaccarino stated that the team is preparing to launch functionalities that will allow users to perform various financial operations within a single application.
Musk's stance and actions regarding the SEC lawsuit highlight his ambitions for innovation and plans to integrate financial services into his new platform, potentially changing user engagement with social media.
