Federal judge rules SEC case against Elon Musk must remain in Washington DC

A federal judge in Washington, D.C., ruled Thursday that a Securities and Exchange Commission lawsuit against X owner and Tesla CEO Elon Musk must remain in the nation's capital instead of moving it to Texas.

The SEC sued Musk in January, alleging he failed to properly disclose his purchase of Twitter stock in 2022, before he purchased the social media platform, thereby underpaying its investors. Musk later changed the app's name to X.

Musk claimed that he was too busy to properly defend himself in Washington, D.C., and asked for the case be moved closer to his home in Austin, Texas, because he works long hours. Several of his companies are also based in Texas.

U.S. District Judge Sparkle Sooknanan ruled the world's richest man has "considerable means" and spends at least 40% of his time outside Texas. She also said  that he spent considerable time in D.C. this year when he oversaw the Department of Government Efficiency, according to Reuters. 

"Indeed," she wrote, "Mr. Musk's brief itself indicates that he has spent substantial time here this year."

The judge also said that Texas judges have heavier case loads than she does, which means she can oversee the case with "reasonable alacrity." 

Sooknanan additionally denied his request to move the case to New York City, where he faces another lawsuit related to X. 

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.