Why the SEC’s Lawsuit Against Musk Is Likely to Last for a While
The SEC’s lawsuit against Elon Musk over Twitter shares may face challenges ahead
Elon Musk, SEC, Twitter, X, Donald Trump, Paul Atkins, Washington, Investors
Washington: So, Elon Musk is in hot water again with the SEC. This time, it’s about his big Twitter buy. The SEC is saying he didn’t spill the beans about snagging a major stake in the company back in 2022.
Even with a new administration coming in, it looks like the SEC isn’t backing down. Former SEC folks think they’ll keep pushing this lawsuit. Musk’s close ties with Trump might not be enough to shake them off.
One former SEC attorney mentioned that the new team will want to avoid looking like they’re just doing Trump a favor. It’s a tricky situation for the new SEC chair, Paul Atkins, who’s stepping into a bit of a mess.
The SEC claims Musk was late in filing his disclosure, which is a big no-no. They say he missed the deadline by 11 days, and that’s a clear violation. Musk, of course, isn’t taking this lying down. He’s called the SEC a “totally broken organization” and thinks they should focus on real crimes instead.
This isn’t Musk’s first rodeo with the SEC. He’s had a rocky relationship with them for years, starting with those tweets about taking Tesla private. He’s been pretty vocal about his disdain for the agency, calling it a “weaponized institution.”
Now, with his political connections, it’s unclear how he’ll handle this latest lawsuit. His lawyer has downplayed the charges, saying it’s just a minor complaint. Many think the SEC might settle this case, but it’ll be interesting to see how it all plays out.
Atkins, if confirmed, will have to navigate this lawsuit carefully. It’s going to be a hot topic during his confirmation hearing. It feels like the SEC is throwing down a challenge for him right from the start.