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2h ago

Judge Keeps SEC’s Musk Case in D.C. After Bid to Move to Texas Fails

The judge said Washington is the more efficient venue given Musk’s resources.

Elon Musk attends the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022. Patrick Pleul/Pool via REUTERS/File Photo/File Photo

Overview

  • U.S. District Judge Sparkle Sooknanan denied Elon Musk’s request to transfer the SEC lawsuit to Texas and also rejected a fallback bid to move it to Manhattan.
  • She wrote that Musk has considerable means and spends at least 40% of his time outside Texas, undermining his claim that a Washington trial would be too burdensome.
  • The ruling referenced Musk’s substantial time in Washington this year during his stint leading the Department of Government Efficiency.
  • The judge noted Texas judges carry heavier caseloads and said the D.C. court can proceed with reasonable alacrity.
  • The SEC’s January suit alleges Musk delayed disclosing crossing 5% ownership in Twitter by 11 days, enabled over $500 million in additional purchases, and seeks a civil fine plus $150 million in disgorgement as Musk moves to dismiss.