The US Securities and Exchange Commission (SEC) voted 4-1 in January 2025 to file a lawsuit against Elon Musk for alleged violations of securities laws related to his purchase of Twitter shares in 2022. The vote occurred shortly before the Republican leadership took over the agency.

The dissenting vote came from Republican Commissioner Mark Uyeda, the acting head of the SEC. Uyeda reportedly encouraged enforcement staff to affirm that the case against Musk was not politically motivated. However, the staff declined, citing standard SEC practices.

The SEC’s lawsuit, filed on Jan. 14, 2024, alleges that Musk failed to disclose his acquisition of over 5% of Twitter shares within the required 10-day window. This allowed him to save US$150 million by purchasing shares at lower prices.

Musk’s disclosure, made 21 days after his purchase, resulted in a spike in Twitter’s share price. The SEC did not charge Musk with intent behind the late disclosure after examining the matter.

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