Just days before Republicans took over the U.S. Securities and Exchange Commission (SEC) in January, the agency’s commissioners voted 4-1 to sue Elon Musk over delayed disclosure of Twitter stock purchases in 2022. The SEC alleges Musk, a known ally of Donald Trump, violated securities laws by disclosing his more-than-5% stake in Twitter 21 days late—well beyond the 10-day legal limit. That delay allowed Musk to buy additional shares at lower prices, saving $150 million, the SEC claims.
Republican commissioner Mark Uyeda, now acting SEC chair, was the sole dissenting vote. He reportedly asked enforcement staff to affirm the case wasn’t politically motivated—requests they declined, citing it was not standard practice. Interestingly, Republican Hester Peirce also voted in favor, aligning with the agency’s three Democrats despite concerns over the $150 million disgorgement and penalties.
Musk claimed he misunderstood the disclosure rule and denied any intent to mislead. Although the SEC explored possible intent, no such charges were brought. Musk’s refusal to sit for a third deposition prolonged the investigation, making a pre-election resolution impossible. A court later compelled his testimony in October 2024.
In December, the SEC offered Musk a last-minute settlement, which he rejected, leading to the civil lawsuit filed January 14. Legal experts have questioned the SEC's timing, with some seeing the late action as politically charged, while others argue not suing would have undermined the agency’s credibility.
Musk, who has a long history of clashes with the SEC, has until April 4 to respond. Meanwhile, Trump has ordered a review of agency actions under Biden, including politically sensitive probes like Musk’s. The SEC has declined to comment on the case, vote details, or the review.