SEC Files Securities Lawsuit Against Elon Musk Over Twitter Purchase

The US Securities and Exchange Commission has filed a lawsuit against Elon Musk that is related to his purchase of Twitter, which he renamed “X.” The lawsuit accuses Musk of failing to disclose his shares in the company (Twitter) while continuing to purchase shares at an artificially low price prior to his buyout of the company. While this is a serious issue and an egregious violation of the law, absolutely nothing will come of it because Musk is so deeply connected to Donald Trump. Ring of Fire’s Farron Cousins explains what’s happening.

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*This transcript was generated by a third-party transcription software company, so please excuse any typos.

On Tuesday after the close of business for the day, the SEC, the US Securities and Exchange Commission announced that they had filed a lawsuit against Twitter, ex owner Elon Musk over his purchase of the company and his failure to disclose the number of shares that he owned prior to the purchase, which then allowed him, according to the lawsuit, to scoop up a bunch of extra shares at an artificially low price, which ended up saving Elon Musk about $150 million. Again, that's all according to the lawsuit. Here's the issue with this. This is a big problem for Elon Musk. This is obviously an egregious violation of the rules. He was supposed to disclose how much stock he owned. He waited 11 days to do it, so he eventually did it just 11 days too late, and in those 11 days, bought more stock, saved himself. $150 million kind of seems cut and dry.

This appears to have happened. Why'd you wait so long to file the lawsuit, right? I mean, what's even the point at this point? Donald Trump will be sworn in in a couple days. One of the things he's gonna do is appoint a new person to lead the United States SER Security and Exchange Commission. One of the first things I imagine that that individual is going to do is drop this lawsuit against Donald Trump's best friend, Elon Musk. So why bother? Right? Biden's head of the SEC is stepping down. Trump will get to make the replacement. He gets to do that anyway, even if the guy weren't stepping down like it's over. It's over before it began. So why did you waste time filing this lawsuit right now? This makes absolutely no sense to me. Like thi, this is actually just dumb. This is a waste of everybody's time.

'cause now there's people assigned to it that probably in less than a week are gonna be told, Hey, we're dropping this. People put time and effort and energy into this and to do it now, less than a week before Donald Trump takes over. I mean this. This is just another stupid move by this administer. Like why? What is even the god dang point? But anyway, let me read you what the lawsuit has to say. The SEC contends that in buying Twitter in 2022, Mr. Mr. Musk violated securities laws by amassing a large stock position in the social media company without filing the proper notification. The complaint said he had waited 11 days before filing the required disclosure. With the SEC. The regulatory filings are

Required, so investors in the marketplace can monitor the moves of large investors and potential takeover bids. Because Mr. Musk did not disclose his position, he was able to continue buying Twitter stock at an artificially low price. The SEC said in its lawsuit, the move allowed him to underpay by at least 150 million for the additional shares before he belatedly disclosed his stake. The lawsuit continued. Again, if they have the evidence to back this up, which I'm assuming they do, or else they would not have filed the lawsuit, this is a violation of the law. Don't get me wrong, I'm not trying to undermine that at all. He should pay the price for it. The problem is the SEC knows he's not gonna pay the price for this. This isn't gonna do anything to him. Nothing. None. Not a zip. It's over. So thank you SEC for wasting everybody's time when again, he purchased it in 2022. We're now in the year 2025. So you've had at least two years where you could have done it, but you literally turned your homework in at the last minute as the teacher said, I'm not counting anything at this point. Anyway, so, great job guys. Keep up the amazing work.