The interim SEC chief’s decision to cast the sole vote against suing Elon Musk is a fascinating development in the ongoing saga between Musk and the SEC. To understand the context, let’s dive into the reasons behind the SEC’s lawsuit against Musk.
The SEC alleges that Musk failed to disclose his ownership of Twitter stock in a timely manner, which is required by law when an individual acquires more than 5% of a company’s shares.ยน In this case, Musk started buying Twitter shares in early 2022 and owned more than 5% by March 2022. However, he didn’t disclose his ownership until April 4, 2022, 11 days after the report was due.
Musk’s lawyer, Alex Spiro, has responded to the lawsuit, calling it a “sham” and arguing that Musk has done nothing wrong. Spiro also pointed out that the SEC’s complaint is based on a single-count charge under Section 13(d) for an alleged administrative failure to file a single form, which carries a nominal penalty.
The interim SEC chief’s decision to vote against suing Musk raises questions about the SEC’s strategy and the potential implications for Musk and Twitter. As the situation unfolds, it will be interesting to see how the SEC’s lawsuit against Musk plays out.
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