Musk and the SEC Current SEC chair cast only vote against suing Elon Musk, report says SEC case over late disclosure of Twitter stock buy still moving ahead, for now. Jon Brodkin Mar 24, 2025 1:19 pm | 12 Credit: Getty Images | NurPhoto Credit: Getty Images | NurPhoto Story textSizeSmallStandardLargeWidth *StandardWideLinksStandardOrange* Subscribers only Learn moreA new report says that when the Securities and Exchange Commission sued Elon Musk less than a week before President Trump's inauguration, only one memberthe current chairmanvoted against filing the lawsuit.The vote behind closed doors was 41, with three Democrats and Republican Hester Peirce joining to support the lawsuit over Musk's late disclosure of a Twitter stock purchase in early 2022, Reuters reported today. The one dissent reportedly came from Republican Mark Uyeda, who was subsequently named acting SEC chairman by Trump.Uyeda also asked SEC enforcement staff "to declare that a case they wanted to bring against Elon Musk was not motivated by politics, an unusual request that the staffers refused," Bloomberg reported last month. Reuters said its sources confirmed that "staff refused to sign the pledge, as it is not typical SEC practice."Reuters reported that two of its sources "said Uyeda and his fellow Republican Peirce took issue with what the SEC wanted Musk to paygiving up $150 million in alleged unjust enrichment plus a penalty. Nonetheless, Peirce joined with the three Democrats in voting to sue."An SEC spokesperson declined to comment on the vote when contacted by Ars today. The three current commissioners are Uyeda, Peirce, and Democrat Caroline Crenshaw. Gary Gensler, a Democrat who was chair under Biden, left upon Trump's inauguration. Democrat Jaime Lizrraga also resigned from the SEC in January.SEC v. Musk still moving aheadBefore Musk bought Twitter for $44 billion, he purchased a 9 percent stake in the company and failed to disclose it within 10 days as required under US law. "Defendant Elon Musk failed to timely file with the SEC a beneficial ownership report disclosing his acquisition of more than five percent of the outstanding shares of Twitter's common stock in March 2022, in violation of the federal securities laws," the SEC said in the January 2025 lawsuit filed in US District Court for the District of Columbia. "As a result, Musk was able to continue purchasing shares at artificially low prices, allowing him to underpay by at least $150 million for shares he purchased after his beneficial ownership report was due."The SEC lawsuit against Musk is still moving forward, at least for now. Musk last week received a summons giving him 21 days to respond, according to a court filing.Enforcement priorities are expected to change under the Trump administration, of course. Trump's pick to replace Gensler, Paul Atkins, is waiting for Senate confirmation. Atkins testified to Congress in 2019 that the SEC should reduce its disclosure requirements.Trump last month issued an executive order declaring sweeping power over independent agencies, including the SEC, Federal Trade Commission, and Federal Communications Commission. Trump also fired both FTC Democrats despite a US law and Supreme Court precedent stating that the president cannot fire commission members without good cause.Another Trump executive order targets the alleged "weaponization of the federal government" and ordered an investigation into Biden-era enforcement actions taken by the SEC, FTC, and Justice Department. The Trump order's language recalls Musk's oft-repeated claim that the SEC was "harassing" him.Jon BrodkinSenior IT ReporterJon BrodkinSenior IT Reporter Jon is a Senior IT Reporter for Ars Technica. He covers the telecom industry, Federal Communications Commission rulemakings, broadband consumer affairs, court cases, and government regulation of the tech industry. 12 Comments