Elon Musk Accused of Hiding $500M Twitter Stock Buy—SEC Response Deadline Now August 2025

In March 2022, Elon Musk quietly became Twitter’s largest shareholder. By March 14 of that year, he had crossed the 5% ownership threshold, a legal trigger that requires public disclosure under U.S. securities law.

Musk did not file the required documents until April 4, 2022, leaving a gap of nearly three weeks. During that time, he continued buying Twitter shares on the open market. The SEC says this allowed Musk to accumulate more than $500 million in stock at prices that were artificially low because the public didn’t know he was building a controlling position.

When Musk’s involvement became public on April 4, Twitter’s stock price jumped 27% in one day, reflecting the market’s reaction to the news.

Federal Rules on Large Shareholders

U.S. securities law requires any investor who acquires more than 5% of a public company to disclose the purchase within 10 calendar days. This rule is meant to keep markets transparent and prevent well-connected or wealthy investors from secretly building stakes while regular shareholders remain unaware.

Musk’s 11-day delay beyond the legal deadline is at the center of the SEC’s case. According to regulators, the timing of his trades allowed him to keep buying shares at prices that did not reflect his growing influence over the company. Sellers during that period did not know they were selling to Musk or that a major corporate shift could be coming.

SEC Seeks Financial Penalties and Repayment of Profits

The SEC is asking the court to impose two forms of punishment:

• A civil fine for violating the stock disclosure rules

• A requirement that Musk return any profits he made by buying shares before announcing his stake

In legal terms, this process is called disgorgement, which forces violators to give up gains made through improper conduct. The SEC often uses this tool when regulators believe investors gained an unfair advantage at the expense of others.

Musk’s Lawyers and SEC Agree to New Deadline

Musk’s legal team and the SEC jointly requested more time for Musk to respond to the lawsuit. The court has now set August 29, 2025 as the new deadline.

This is not the first delay in the case. The original response date was June 6, 2025, then moved to July 18, and now extended again to late August. Both sides told the court the additional time is necessary because of the complexity of the case and the volume of financial documents involved.

The Stock Trades That Sparked the Case:

How the Stock Purchase Led to Musk Owning Twitter

Musk’s initial stock purchases eventually led to his full takeover of Twitter. In the months following his public disclosure, he launched a bid to buy the company outright. That deal closed in October 2022 for $44 billion.

After the acquisition, Musk rebranded Twitter as X Corp and made a series of changes to the platform. However, the SEC’s lawsuit focuses only on the period before his buyout offer, when he was still quietly building his stake in the company through open-market trades.

No Trial Date Set Yet

As of now, the case remains in its early stages. No trial date has been scheduled. Musk’s legal team has not filed an official answer to the SEC’s complaint, and no public statements have been made by either side beyond the court filings.

Once Musk files his response in August 2025, the case will move into the next phase. That could include court hearings, settlement discussions, or a full trial, depending on how both sides proceed.

Also Read: Can Elon Musk Still Run Tesla? Why Investors Are Worried About His Focus