SEC lawsuit against Elon Musk sparks political debate
Legal experts are divided over whether the SEC’s lawsuit against Musk is justified or politically motivated.
The US Securities and Exchange Commission (SEC) voted 4-1 to sue Elon Musk over his delayed disclosure of Twitter shares, a move that has sparked political controversy.
Republican Mark Uyeda, now the agency’s acting head, opposed the lawsuit, while the remaining commissioners, including fellow Republican Hester Peirce, supported it.
Uyeda reportedly asked enforcement staff to confirm the case was not politically motivated, but they declined, citing SEC procedures.
Musk’s failure to disclose his Twitter stake within the required timeframe allegedly saved him $150 million by allowing him to buy shares at lower prices.
The SEC attempted to settle the case in December, but Musk refused, accusing the agency of giving him an unreasonable deadline. Legal experts have questioned why the case took so long to be filed, with some suggesting the delay has undermined the SEC’s credibility.
The lawsuit is the latest in Musk’s long-running feud with the SEC, dating back to 2018 when the agency sued him over his tweets about taking Tesla private. He has until 4 April to respond to the summons.
Meanwhile, President Donald Trump has ordered a review of investigations conducted under Joe Biden, adding further political weight to the case.
Critics argue the SEC must enforce market rules consistently, while others see the timing as a potential sign of selective enforcement.
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