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As the clock is running out on the Biden administration, the US Securities and Exchange Commission has challenged it Elon Musk in federal court. The current law is straightforward. The time to complain is very difficult.
The SEC’s complaint focuses on Musk’s acquisition of Twitter assets in early 2022. According to the complaint, Musk failed to notify the agency that he had acquired more than five of the shares he owns in the company within 10 calendar days. If true, that delay violation of federal security laws. “As a result, Musk was able to continue to buy shares at lower prices,” the SEC said. he says“to allow him to pay at least $150 million for the share he bought after the profit report is issued.” The SEC has requested a jury trial.
This should be easy. “It seems like a straightforward case of violating the SEC’s well-established rules,” said James Park, a UCLA School of Law professor who focuses on securities and corporate law. You can write your essay within 10 days or you don’t; The SEC says Musk did not. He acquired enough shares to exceed the limit by March 14 of that year, the agency said, and did not publicly declare his ownership until April 4. March 24.)
And yet it took almost three years for the SEC to bring a lawsuit. “The question is, why are they doing this now,” said David Rosenfeld, former director of the SEC’s New York office and a professor at Northern Illinois University College of Law. “The only reasonable answer is that they want this to happen before the leadership changes.” Rosenfeld says he did not take the SEC’s complaint seriously.
This major branch change, which takes place in less than a week, will allow Musk to be in control. gave hundreds of millions of dollars to PACs supporting President Donald Trump’s campaign and has reportedly served as an international advisor to the President-elect during the transition. Current SEC Chairman Gary Gensler is likely to be replaced by Trump’s nominee, Paul Atkins, who is known to support light touch control.
Musk’s lawyer, Alex Spiro, says he believes the complaint is a separate shot. “As the SEC backs away and leaves, the SEC’s years-long effort to harass Mr. Musk culminated in the filing of a single ticky-tack complaint against Mr. Musk,” he wrote in an email.
Although the filing comes shortly before Trump’s inauguration, the investigation that led to the complaint is years in the making. The agency was supposed to subpoena Musk in May 2023 for his testimony in the investigation, and. he said that Musk banned them two days before his testimony in September. Federal court to be held a preliminary injunction to compel him to testify in May 2024; SEC lawyers came out to question him on September 10, but he they stood up again to attend the launch of SpaceX.
