- Acting SEC Chair Mark Uyeda voted against suing Elon Musk for alleged Twitter stock disclosure violations, while Commissioner Hester Peirce joined three others in voting to proceed with the lawsuit.
- The SEC alleges Musk delayed disclosing his Twitter share purchases by 11 days after crossing the 5% ownership threshold, potentially saving $150 million through continued acquisitions at lower prices.
- Musk has until April 4 to respond to the lawsuit, while President Trump has ordered a review of potentially politically motivated investigations at federal agencies including the SEC.
A split vote among Securities and Exchange Commission officials preceded the agency’s lawsuit against Elon Musk over alleged securities violations related to his Twitter stock disclosures, according to a Reuters report published on March 24. Acting SEC Chair Mark Uyeda, a Trump appointee, cast the sole dissenting vote in the five-commissioner decision to sue the billionaire entrepreneur.
The SEC’s lawsuit, filed on January 14, claims Musk violated securities regulations by failing to disclose his Twitter share purchases within the required 10-day window after surpassing the 5% ownership threshold. According to the agency, Musk’s 11-day delay in disclosure allowed him to continue acquiring shares at artificially lower prices, resulting in approximately $150 million in savings during his eventual $44 billion acquisition of the platform now known as X.
Commissioner Hester Peirce, despite her history of opposing SEC enforcement actions against the cryptocurrency industry during former Chair Gary Gensler’s tenure, reportedly voted alongside three other commissioners to proceed with the lawsuit against Musk. Both Peirce and Uyeda have been notable for their dissenting opinions on crypto-related enforcement during the previous administration.
Musk and his legal team have firmly pushed back against the allegations. His attorney, Alex Spiro, previously told Cointelegraph that the SEC’s action represents an “admission” of its inability to bring a substantive case. Meanwhile, Musk himself described the SEC as a “totally broken organization” on his social media platform, arguing that “so many actual crimes” go unpunished while the agency pursues him.
The conflict escalated in February when the Department of Government Efficiency (DOGE), an agency led by Musk, targeted the SEC by soliciting public reports of “waste, fraud and abuse” related to the regulatory body. Musk amplified this call to his more than 200 million X followers.
Court documents indicate Musk has until April 4 to formally respond to the lawsuit. Simultaneously, President Trump has issued an executive order mandating a review of what he characterizes as politically motivated investigations conducted by federal agencies, including the SEC, under the previous administration.
The case represents another chapter in Musk’s contentious relationship with the SEC, which previously sued him in 2018 over tweets about taking Tesla private, resulting in a settlement that required oversight of his social media communications.
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