Commissioner Acting as Lead at SEC Opted Out of Lawsuit Against Elon Musk
Elon Musk found himself in hot water with the U.S. Securities and Exchange Commission (SEC) just before Donald Trump's inauguration. Seems like Musk allegedly didn't play by the rules when he scooped up more than 5% of Twitter shares while the company was still public, a move that requires disclosure within 10 calendar days. However, old Elon decided to keep his juicy secret under wraps for the full 10 days and then some, according to the SEC's complaint.
If that wasn't iffy enough, it's rumored that Musk's tardy disclosure allowed him to snag Twitter shares for a cool $150 million less than they were worth. And, of course, Twitter's share price predictably skyrocketed by 27% once the cat was out of the bag about Musk owning more than 5% of the company.
The SEC has been digging into the shady dealings surrounding Musk's Twitter acquisition since 2022. In January 2025, the commissioners held a vote to decide the agency's next move based on the findings of their investigation. Republican Commissioner Hester Peirce felt the proposed fine for Musk was a tad too hefty, but she went along with it anyways.
Mark Uyeda, however, opted for a different strategy. He started persuading SEC staffers to pledge that the case against Musk was devoid of political influence. Strangely enough, that ain't exactly the SEC's formal procedure, and the staff refused to put their names on the dotted line. Alone in his convictions, Uyeda cast the lone "no" vote against suing Musk, and viola! The motion passed with a comfortable 4 to 1 majority.
Fast forward a month, and guess who Trump appointed as the acting head of the SEC? Yup, none other than Mark Uyeda. With Musk's new pal at the top, he can probably breathe a sigh of relief. Plus, Trump's executive order labeling past Biden administration investigations as politically motivated, the SEC's adoption of a rule adding roadblocks to investigations, and Musk himself and the Department of Government Efficiency's efforts to dismantle the agency certainly aren't helping the SEC's case against Musk.
Not that it matters much to Musk, but the SEC recently slapped him with a court summons in connection to the case, requiring him or his legal eagles to respond by April 4. Looks like Musk is sitting pretty, giving him a fair amount of leverage in deciding the ultimate outcome of any action against him.
The enrichment data suggests that Musk is facing allegations of securities fraud related to his Twitter purchase, including late disclosures and potential manipulation of Twitter's stock price. The SEC has previously filed a suit against Musk in different circumstances, and he is currently facing other legal challenges related to the Twitter deal. However, there is no evident mention in the search results about any impact from Mark Uyeda's position or actions by Donald Trump on these ongoing cases.
- Elon Musk faces allegations of securities fraud related to his late disclosures and potential manipulation of Twitter's stock price, as reported by the SEC's enrichment data.
- In a recent development, the SEC has reportedly issued a court summons to Musk, requiring him or his legal team to respond by April 4.
- Rumors suggest that Musk's allegedly late disclosure of his Twitter share acquisition allowed him to save approximately $150 million, further intensifying the SEC's investigation.
- The SEC's case against Musk could be affected by the current political climate, as Mark Uyeda, who reportedly delayed a vote against suing Musk, was later appointed by Donald Trump as the acting head of the SEC.
