A federal judge on Tuesday rejected Elon Musk’s bid to dismiss a Securities and Exchange Commission lawsuit that claimed he waited too long to disclose his purchases of Twitter shares in 2022. Washington, DC-based US District Judge Sparkle Sooknanan said Musk’s arguments, including that the SEC overreached in order to punish him for criticizing it, did not warrant dismissal. Lawyers for Musk did not immediately respond to requests for comment. An SEC spokesperson declined to comment. Elon Musk was sued by Wall Street regulators over his late disclosure of his purchases of Twitter shares in 2022 AP The SEC sued Musk in January 2025, saying his 11-day delay in revealing his initial 5% Twitter stake let him buy more than $500 million of shares at low prices. It wants Musk to repay the $150 million he allegedly saved at the expense of unsuspecting investors, plus a civil fine. Musk has called the delay inadvertent. He also said the SEC case amounted to “selective enforcement” of federal securities laws, designed to target him for criticism of “government overreach” that is protected speech under the Constitution’s First Amendment. Musk also called a $150 million payout an excessive fine that violates the Constitution’s Eighth Amendment, dwarfing the $100,000 penalty the SEC has sought in similar cases. Explore More