The U.S. Securities and Exchange Commission (SEC) is pressing forward with its $150 million lawsuit against Elon Musk, originally filed during the Biden administration.
Legal Battle Over Twitter Stock
In a court filing on Monday, Musk, who now serves as the head of the Department of Government Efficiency (DOGE), agreed to formally respond to the lawsuit. This marks the first significant development in the case since the SEC served Musk with a complaint and summons earlier this month. However, Musk has contested the validity of the service, arguing that it was improperly executed.
The lawsuit, initially filed on January 14, 2025, just before the end of the Biden administration, alleges that Musk failed to properly disclose his stock purchases, which misled investors about his intentions with Twitter. This legal challenge is just one of several regulatory battles Musk has faced in recent years.
Musk’s legal team has negotiated a deadline extension, with his formal response to the SEC’s complaint now due by June 6, pending court approval. "The parties respectfully submit that this compromise is reasonable and will conserve judicial resources," the filing stated.
Musk’s Response and Public Backlash
Musk, who is no stranger to high-profile legal disputes, has remained defiant in the face of the SEC’s allegations. In January, he took to X (formerly Twitter) to express his frustration, posting, "They spend their time on s--- like this when there are so many actual crimes that go unpunished."
Supporters of Musk argue that the SEC is unfairly targeting him, while critics believe his handling of the Twitter acquisition raises valid concerns about transparency and investor protection. This case is reminiscent of Musk’s previous run-ins with the SEC, including a 2018 settlement over his infamous "funding secured" tweet about taking Tesla private.
Political and Business Ramifications
Beyond the courtroom, the lawsuit has significant implications for Musk’s business empire and his role in the Trump administration. As the leader of DOGE, Musk has already drawn criticism for his involvement in government operations, with some arguing that his financial and political entanglements create conflicts of interest.
Tesla, SpaceX, and X (formerly Twitter) have all felt the ripple effects of Musk’s legal troubles. Tesla’s stock, already under pressure from his government role and recent controversies, could face further volatility if the case drags on. Meanwhile, SpaceX, which relies heavily on government contracts, may also face scrutiny over Musk’s ongoing legal battles.
With Musk’s response due in June, legal experts expect a prolonged court fight. If the SEC succeeds, Musk could face financial penalties or additional restrictions on his business dealings. However, given his history of legal resilience, some believe he will fight the case aggressively and may even seek a settlement.
As the lawsuit unfolds, investors, regulators, and the public will be closely watching how Musk balances his multiple roles and navigates yet another legal storm. Whether this case significantly impacts his business ventures or political influence remains to be seen, but it is yet another chapter in the ongoing saga of one of the world’s most influential and controversial tech moguls.