SEC Commissioners Divided Over Lawsuit Against Elon Musk

According to Cointelegraph, the United States Securities and Exchange Commission (SEC) is facing internal division over its decision to sue Elon Musk for alleged securities violations related to his acquisition of Twitter stocks. The SEC's five commissioners reportedly voted on whether to proceed with legal action against Musk, with four commissioners supporting the lawsuit and one dissenting. Mark Uyeda, appointed as acting chair by U.S. President Donald Trump, was the sole commissioner to vote against the lawsuit. SEC Commissioner Hester Peirce joined three other commissioners in favor of suing Musk. The lawsuit stems from Musk's purchase of Twitter in 2022 for $44 billion, which he subsequently rebranded as X. The SEC has been investigating Musk's compliance with securities laws during this acquisition. The agency filed the lawsuit on January 14, alleging that Musk failed to disclose his purchase of Twitter shares within the required 10-day period after exceeding the 5% ownership threshold. The SEC claims Musk delayed the disclosure by 11 days, allowing him to acquire shares at lower prices and save approximately $150 million. In response to the lawsuit, Musk's lawyer, Alex Spiro, criticized the SEC's actions, suggesting they indicate an inability to present a substantial case. Musk himself has publicly condemned the SEC, labeling it a "totally broken organization" on X and accusing it of neglecting to address "actual crimes." Following the lawsuit, the Department of Government Efficiency (DOGE), a U.S. government agency led by Musk, has targeted the SEC, encouraging the public to report any "waste, fraud, and abuse" associated with the agency. Musk shared this call to action with his extensive following on X. Musk is required to respond to the lawsuit by April 4, according to court documents. Meanwhile, President Trump has issued an executive order mandating a review of investigations perceived as politically motivated within the SEC and other federal agencies, particularly those initiated under the previous administration.