The Securities and Exchange Commission (SEC) has filed a lawsuit against tech billionaire and X owner Elon Musk.
In its lawsuit, the agency accuses Musk of failing to disclose his ownership of Twitter stock in a timely manner in early 2022 after purchasing the platform for $44 billion.
According to The New York Times, the omission allowed Musk to save “by at least $150 million” on shares he purchased after surpassing the 5 percent ownership threshold.
This alleged violation prompted the SEC to launch an investigation in April 2022, examining whether Musk had breached securities laws in connection with his Twitter stock purchases and related filings.
“The SEC authorized a probe to determine if there were any infractions tied to Musk’s acquisition of shares and his statements,” the agency noted.
Over the past few weeks, Musk had mentioned the S.E.C. in posts on X about the potential for filing a lawsuit. In December, he shared a letter that his lawyer, Alex Spiro, had sent to the agency, rejecting a settlement offer in the case.
On Tuesday, Spiro denounced the regulator’s latest filing.
“Today’s action is an admission by the S.E.C. that they cannot bring an actual case, because Mr. Musk has done nothing wrong and everyone sees this sham for what it is,” Mr. Spiro said in a statement. The agency had waged a “multiyear campaign of harassment” against Mr. Musk but filed “a single-count ticky-tack complaint,” Mr. Spiro added.
The legal saga adds another chapter to Musk’s tumultuous history with Twitter. After signing a deal to acquire the platform in April 2022, he attempted to back out, leading the company to sue him to enforce the agreement. (RELATED: SEC Issues Settlement Demand To Elon Musk: Pay Or Face Charges Within 48 Hours)
Despite the latest legal maneuver from the SEC, the lawsuit stands little chance of sticking when Trump appoints new leadership to take charge of the regulator.
Current SEC chairman Gary Gensler will step down after Donald Trump is inaugurated on Monday and it is unclear whether incoming regulators will pursue the litigation. The president-elect has said he intends to nominate Paul Atkins, a former S.E.C. commissioner and pro-business conservative, to succeed Gensler.
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“The SEC authorized a probe to determine if there were any infractions tied to Musk’s acquisition of shares and his statements,” the agency noted.
That’s weaponizing the government for political purposes. This is corrupt third world stuff. In the United States we investigate crimes, not people.
Why is the govt so afraid of Musk. He is just on a committee that has the job of studying where the govt agencies can be shrunk to the true size the agency should be to handle its work and who needs to be audited to see what the agency is spending their taxpayer money on. That’s all. Oh, also, I forgot, what agencies get shut down too. The govt should not be afraid of Musk.