The SEC’s lawsuit against Elon Musk over Twitter shares may persist due to straightforward allegations and political dynamics.
Washington: So, Elon Musk is in hot water again. The SEC just hit him with a lawsuit over his $44 billion Twitter buyout, now called X. They claim he didn’t disclose his major stake in the company on time, which let him snag shares at lower prices. That’s a big deal because investors lost out on over $150 million.
Even with a new administration coming in, it looks like the SEC is sticking to its guns. Former SEC officials think the new leadership won’t just drop the case because of Musk’s ties to Trump. They want to avoid looking like they’re playing favorites.
One former SEC attorney said it’s a pretty clear-cut violation. Musk was late by 11 days in filing his disclosure when he crossed the 5% ownership mark. It’s not rocket science; you either file or you don’t.
Musk, of course, isn’t taking this lying down. He called the SEC a “totally broken organization” and dismissed the lawsuit as a minor issue. He’s been at odds with the SEC for years, ever since they sued him over his tweets about taking Tesla private.
Now, with his political connections, it’s unclear if he’ll use them to fight back. His lawyer downplayed the lawsuit, suggesting it might settle in a way that favors Musk. But this whole situation is a tricky one for Paul Atkins, the new SEC chair, who’s got to navigate these waters carefully.
In short, this lawsuit could be a real test for the SEC under new leadership, and it’s definitely not going away anytime soon.
