WASHINGTON (dpa-AFX) - Elon Musk's attempt to move a Securities and Exchange Commission lawsuit from Washington, D.C., to Texas, where he lives and has a large portion of his business empire, was unsuccessful.
Although she recognized Musk's hectic schedule, U.S. District Judge Sparkle Sooknanan decided that his wealth and frequent travel, including a considerable amount of time spent in the capital this year, undermined his claim of undue hardship.
Musk had maintained that, considering his workweeks of more than 80 hours and his active management of SpaceX, Tesla, and other businesses, it would be a burden to file a lawsuit in Washington.
However, Judge Sooknanan stated that her court could operate more effectively and pointed out that Texas courts handle a greater volume of cases. Musk's alternative request to relocate the case to Manhattan, where he is facing related shareholder litigation, was also denied by her.
Musk was charged by the SEC in January with postponing the disclosure of his increasing Twitter stake until early 2022. Regulators claim that he was able to covertly accumulate shares at reduced prices during the 11-day delay, saving at least $150 million at the expense of investors. The agency is requesting a jury trial, civil penalties, and disgorgement of those gains.
Musk, who paid $44 billion to acquire Twitter, now X in 2022, has denied any wrongdoing and filed a motion to have the case dismissed. The SEC and his legal team recently decided to extend his formal response deadline to August 29.
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