Securities and Exchange Commission (SEC) has filed a lawsuit against the Tesla and SpaceX CEO, alleging he violated securities laws related to his $44 billion purchase of Twitter (now X).
Here’s what’s happening:
The SEC claims that Musk didn’t file the necessary paperwork on time when he started buying Twitter shares. According to the complaint, this allowed him to keep snagging shares at prices lower than their real value. The result? Allegedly saving himself at least $150 million.
The complaint states:
“As a result, Musk was able to continue purchasing shares at artificially low prices, allowing him to underpay by at least $150 million for shares he purchased after his beneficial ownership report was due.”
Musk’s response? Not surprisingly, he’s not backing down.
His lawyer, Alex Spiro, called the suit a weak attempt to create a case where there isn’t one. In his words:
“Today’s action is an admission by the SEC that they cannot bring an actual case — because Mr. Musk has done nothing wrong, and everyone sees this sham for what it is.”
Spiro went on to describe the SEC’s move as a “ticky-tack complaint” over a minor administrative issue that carries only a nominal penalty if proven.
Not the First Rodeo
If this sounds familiar, it’s because Musk has faced off against the SEC before. Back in 2018, the commission took issue with his infamous “funding secured” tweet, where he suggested taking Tesla private. That case ended in a settlement, with both Musk and Tesla paying $20 million fines.
For now, the SEC hasn’t commented publicly on the latest lawsuit, and Musk seems ready to fight back just as fiercely as ever.
What’s Next?
This case is yet another chapter in the ongoing saga between Musk and the SEC. As always, the stakes are high, the drama is real, and the world is watching.
What do you think? Is this a legitimate concern, or just another skirmish in the Musk vs. SEC feud? Let us know in the comments!
