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Elon Musk was unable to convince a federal judge in Washington, D.C., to transfer a lawsuit filed by the Securities and Exchange Commission (SEC) to Texas. This was after Musk claimed he was too busy to defend himself in the nation’s capital.
Judge Sparkle Sooknanan acknowledged Musk’s busy schedule but noted that, as the world’s richest individual, he has considerable resources and spends at least 40% of his time outside Texas. She pointed out that Musk’s own statements indicated he has spent significant time in Washington this year, particularly when he was involved with the Department of Government Efficiency.
The judge also highlighted that Texas judges handle heavier caseloads, allowing her court to proceed efficiently. Musk argued that litigating in Washington would impose substantial burdens due to his busy work schedule, which includes long hours and sleeping in offices or factories.
Legal representatives for Musk did not immediately comment, and the SEC’s spokesperson declined to provide a statement due to the ongoing government shutdown. On Wednesday, Musk’s net worth exceeded $500 billion for the first time.
The SEC initiated legal action against Musk in January, accusing him of delaying the disclosure of his 5% Twitter stake by 11 days in early 2022. This delay allegedly allowed Musk to acquire over $500 million worth of shares at below-market prices. The SEC seeks a civil fine and the forfeiture of $150 million Musk purportedly saved at the expense of unsuspecting investors. Musk has filed motions to dismiss the case.
In October 2022, Musk purchased Twitter for $44 billion and rebranded it as X. Musk resides in Austin, with Tesla, SpaceX, and The Boring Company headquartered in Texas.
The court rejected Musk’s alternative proposal to move the SEC case to Manhattan, where former Twitter shareholders are suing him.
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