Judge gives Musk bad news, says Trump hasn’t intervened to block SEC lawsuit
Donald Trump is so far not stepping in to help Elon Musk end a lawsuit raised by the Securities and Exchange Commission (SEC) over his 2022 Twitter takeover, a US district judge said this week.
Filed by the SEC in the final days of Joe Biden’s administration, the lawsuit seeks $150 million in disgorgement, plus interest, as well as civil penalties and an injunction blocking Musk from future wrongdoing.
The complaint alleged that Musk quietly acquired a 9 percent stake in Twitter without filing necessary timely disclosures to alert other investors of a potential change in company control. This allowed Musk to acquire over 70 million shares at an artificially lower price, the SEC alleged, causing substantial economic harm to investors selling Twitter common stock, some of whom have separately sued.
