SEC vote on Elon Musk lawsuit saw one commissioner oppose

Acting U.S. Securities and Exchange Commission (SEC) Chair Mark Uyeda voted against suing Elon Musk over his disclosure of Twitter stock ownership, according to a March 24 Reuters report citing anonymous sources.

The SEC’s five commissioners reportedly held a vote before proceeding with the lawsuit.

Four commissioners, including Hester Peirce, supported the legal action, while Uyeda cast the sole dissenting vote.

Musk has been under SEC scrutiny for allegedly failing to disclose his stake in Twitter, now rebranded as X, within the required 10-day period after surpassing a 5% ownership threshold.

The lawsuit, filed on Jan. 14, claims Musk delayed disclosure by 11 days, allowing him to buy additional shares at lower prices.

The SEC estimates that this saved him approximately $150 million.

Uyeda and Peirce have previously opposed SEC enforcement actions, particularly under former Chair Gary Gensler’s leadership, which included cases against the cryptocurrency industry.

Musk and his legal team have criticised the SEC’s lawsuit.

His attorney, Alex Spiro, called the case an "admission" by the agency that it lacks a solid foundation.

Musk also described the SEC as a “totally broken organisation” on his platform X, alleging that it ignores "actual crimes."

The case has drawn political attention.

Former President Donald Trump recently issued an executive order calling for a review of what he described as politically motivated investigations by the SEC and other federal agencies.

Musk has until April 4 to respond to the lawsuit, according to court filings.