US District Judge Sooknanan has dealt a significant blow to Elon Musk's defense in his ongoing lawsuit with the Securities and Exchange Commission (SEC) over his 2022 Twitter takeover. In an opinion denying Musk's motion to dismiss the lawsuit, she stated that Donald Trump, who is now in charge of the SEC, has not intervened on his behalf despite being a special government employee.
The case revolves around allegations that Musk failed to disclose his intention to acquire control of Twitter within 10 days of purchasing shares beyond 5 percent. The SEC claims that this was necessary for shareholders to make informed decisions about their investments. As a result, Musk acquired over 70 million shares at an artificially lower price, causing substantial economic harm to investors.
Musk has argued that the lawsuit is part of a politically motivated campaign by the Biden administration and that he is being singled out unfairly. He also claims that the SEC's requirement for disclosures infringes upon his free speech rights.
However, Judge Sooknanan rejected these arguments, stating that Musk failed to show he was being "singled out" and that his theories about a politically motivated campaign were not supported by evidence. She noted that Trump's executive order aimed at investigating Biden-era enforcement actions does not apply to Musk's case.
The judge also shot down Musk's claim that the SEC's requirement for disclosures was unconstitutionally vague, stating that such requirements are common in laws and that the government's interest in ensuring fair markets outweighs Musk's concerns about being compelled to disclose his intentions.
With this latest development, it remains to be seen whether Musk can succeed in his defense without Trump's intervention. The SEC is seeking $150 million in disgorgement, plus interest, as well as civil penalties and an injunction blocking Musk from future wrongdoing.
The case revolves around allegations that Musk failed to disclose his intention to acquire control of Twitter within 10 days of purchasing shares beyond 5 percent. The SEC claims that this was necessary for shareholders to make informed decisions about their investments. As a result, Musk acquired over 70 million shares at an artificially lower price, causing substantial economic harm to investors.
Musk has argued that the lawsuit is part of a politically motivated campaign by the Biden administration and that he is being singled out unfairly. He also claims that the SEC's requirement for disclosures infringes upon his free speech rights.
However, Judge Sooknanan rejected these arguments, stating that Musk failed to show he was being "singled out" and that his theories about a politically motivated campaign were not supported by evidence. She noted that Trump's executive order aimed at investigating Biden-era enforcement actions does not apply to Musk's case.
The judge also shot down Musk's claim that the SEC's requirement for disclosures was unconstitutionally vague, stating that such requirements are common in laws and that the government's interest in ensuring fair markets outweighs Musk's concerns about being compelled to disclose his intentions.
With this latest development, it remains to be seen whether Musk can succeed in his defense without Trump's intervention. The SEC is seeking $150 million in disgorgement, plus interest, as well as civil penalties and an injunction blocking Musk from future wrongdoing.
just saw the latest update on Elon Musk's lawsuit with the SEC 
judge Sooknanan just shut down his defense 
it's clear that Trump hasn't been using his sec gig to help out his BFF 
so, yeah, i'm kinda glad we're seeing some accountability 
hopefully this means the sec gets what they want and Elon pays up 
70 million shares is a lotta cash 
This is crazy! I mean, Elon Musk is a billionaire, but the law is still the law, right? 
Now, I'm not saying Musk didn't do anything wrong... we all make mistakes... but come on! 
It's just basic transparency when it comes to buying a company like Twitter. 
! It's great to see her holding him accountable for his actions on Twitter 
. I mean, come on, guys - if you're gonna acquire 70 million shares of stock, make sure the public knows about it 
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. At the end of the day, it's all about following the rules and being transparent 
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! Will Elon be able to overcome this setback? I'm rooting for the SEC to get that $150 million in disgorgement 
. It almost feels like he's playing both sides or something. The judge said Trump's executive order doesn't apply to this case, which is true, but it just raises more questions about how things are really going down 
. Anyway, I guess we’ll have to wait and see how this all plays out 
and basically said he's got no proof that his takeover of Twitter was anything other than a power grab 
. The whole situation with Trump stepping in as head of the SEC does seem like a pretty convenient twist, don't you think? 
It's almost like he was trying to help out his buddy Musk 
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. I mean, who tries to buy Twitter without disclosing their intentions? It's not like he was trying to start a secret society or something 
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. If he really didn't care about Musk, why did he wait this long to step in? It's like he's trying to protect his buddy from getting what's coming to him 
. You can't just do whatever you want and expect to get away with it 
. I'm not sure what's more cringeworthy, Musk's attempts to spin this as a political attack or his claim that he's being unfairly targeted by the SEC 
. Either way, it looks like you're gonna have to pay up, Elon 
. One thing's for sure - Musk is gonna need a lot more than just his charisma and Twitter followers to get out of this one 
. And honestly, who tries to make their own Twitter takeover more "interesting" by not disclosing intentions? 
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She's all about keeping the market fair and transparent, and it sounds like she's on point 
. I mean, come on Musk, you know as well as we do that transparency is key when it comes to investments 
. The SEC needs to keep pushing back against companies that try to game the system 
It's also interesting to see how Judge Sooknanan weighed in on the free speech vs disclosure debate - she seemed pretty clear that the SEC's requirements weren't unreasonable. Now we'll have to wait and see if Musk can convince a jury otherwise 
I mean, I get that he's a big shot entrepreneur and all, but if you're going to be a part of something as big as Twitter, you gotta follow the rules, you know? 