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Judge Keeps SEC Twitter-Stake Disclosure Case Against Musk in D.C.

Citing his resources plus documented time in the capital, the judge rejected Musk’s claim that litigating in Washington would be overly burdensome.

Overview

  • U.S. District Judge Sparkle Sooknanan denied Elon Musk’s motion to transfer the SEC enforcement action to Texas, leaving the case in Washington, D.C.
  • The judge also refused an alternative request to move the matter to Manhattan, where a separate shareholder suit is pending.
  • Applying 28 U.S.C. § 1404(a), the court balanced private and public interests and found Musk’s convenience showing inadequate.
  • Sooknanan highlighted heavier caseloads in Texas and said her court can proceed with reasonable alacrity.
  • The SEC’s January complaint alleges an 11-day late disclosure after Musk crossed 5% of Twitter, seeks a civil penalty and $150 million in disgorgement, and Musk continues to press for dismissal.