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Today β€” 14 January 2025News

SEC accuses Elon Musk of securities violation in new suit

14 January 2025 at 15:50
tesla cars in a parking lot

AP/Noah Berger

  • The Securities and Exchange Commission has filed suit against Elon Musk.
  • The new suit alleges Musk violated securities law.
  • It's not the first time the Tesla leader has gone toe-to-toe with the SEC.

The Securities and Exchange Commission has filed suit against Elon Musk, alleging he violated securities law, according to a federal docket.

The complaint alleges Musk "failed to timely file with the SEC a beneficial ownership report" disclosing his purchase of Twitter shares before he announced his ownership of the company.

"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 complaint reads.

This isn't the first time the SEC has sued Musk. A 2018 complaint from the commission stemmed from CEO Elon Musk's "funding secured" tweet, which eventually resulted in a settlement under which Tesla and Musk both paid fines of $20 million.

"Today's action is an admission by the SEC that the they cannot bring an actual case β€” because Mr. Musk has done nothing wrong and Everyone sees this sham for what it is," said Musk's attorney Alex Spiro. "As the SEC retreats and leaves office β€” the SEC's multi-year campaign of harassment against Mr. Musk culminated in the filing of a single-count ticky tak complaint against Mr. Musk under Section 13(d) for an alleged administrative failure to file a single form β€” an offense that, even if proven, carries a nominal penalty."

The SEC has not responded to BI's request for comment.

This story is developing. Please check back for updates.

Read the original article on Business Insider

SEC sues Elon Musk, says he failed to disclose Twitter shares purchases

14 January 2025 at 16:03

The Securities and Exchange Commission sued Elon Musk on Tuesday, alleging he failed to properly disclose his purchase of Twitter shares before eventually buying the company.

Why it matters: The suit comes just days before President-elect Trump's inauguration as president, amid uncertainty over what legal scrutiny "first buddy" Musk might face in the new administration.


Zoom out: The SEC, in a suit filed in federal court in Washington, alleges that Musk did not file disclosures in a timely manner in March 2022 as he was acquiring shares of Twitter, now known as X.

  • Because investors did not know the size of his holdings, that allegedly let him buy stock at "artificially low prices," the SEC said, underpaying by an estimated $150 million.

What they're saying: "Today's action is an admission by the SEC that the they cannot bring an actual case β€” because Mr Musk has done nothing wrong and Everyone sees this sham for what it is," his attorney Alex Spiro said in a statement.

  • Spiro went on to call the case a "single-count ticky tak complaint."

Zoom in: The complaint requests an order forcing Musk to give up his "unjust" profits and pay unspecified civil penalties.

Flashback: Musk said he was joining Twitter's board in April 2022, after he'd already purchased 9% of the company's stock.

  • He later backed out of the board seat and acquired the company outright.

Go deeper: Elon Musk fight with SEC reaches tipping point

Trump's pick for Pentagon chief says troops forced out over the COVID vaccine could be 're-recruited' and get back pay, a restored rank, and an apology

14 January 2025 at 15:08
Pete Hegseth

Tom Williams/CQ-Roll Call via Getty Images

  • The secretary of defense nominee pledged to re-recruit troops discharged over COVID-19 vaccine refusal.
  • Over 8,400 troops were separated due to the vaccine mandate, which has now been rescinded.
  • Hegseth said discharged troops should receive back pay, restored ranks, and an apology.

President-elect Donald Trump's pick for secretary of defense, Pete Hegseth, pledged Tuesday to re-recruit troops forced out of the military for refusing to receive the COVID-19 vaccine, and said they would receive back pay, restored ranks, and an apology.

"Service members who were kicked out because of the experimental vaccine," Hegseth told lawmakers, "they will be apologized to. They will be reinstituted with pay and rank."

Hegseth, if confirmed by the Senate, would build on the groundwork laid by Trump, who told supporters last summer he would "rehire every patriot who was fired from the military," because of the vaccine mandate.

Over 8,400 troops were separated from the services after refusing to receive the vaccine following a lawful order from Secretary of Defense Lloyd Austin in 2021. The Pentagon argued that the vaccines, similar to over a dozen others servicemembers receive, were crucial to military readiness.

The Pentagon reversed course and dropped the vaccine mandate in 2023 following a decision by Congress. At that time, it stopped separating troops who had not received the shot. Roughly 99% of the active-duty Navy, Marine Corps, and Air Force had been vaccinated and around 98% of the Army. Guard and Reserve rates were lower but over 90%.

Sen. Jim Banks, a Republican from Indiana, asked if Hegseth Tuesday if he would commit to "recruit these folks back" with back pay.

"I will commit to this because the Commander in Chief has committed to this," Hegseth replied. "Not only will they be reinstated, they will receive an apology, back pay, and rank that they lost because they were forced out due to an experimental vaccine."

Top military brass considered the possibility of providing back pay to troops after the vaccine mandate was repealed in early 2023, but Hegseth's remarks Tuesday drive home the incoming administration's intent to re-recruit separated troops back into the military. It's the first such indication since Trump won re-election.

Such a change could affect the Marine Corps, the DoD's smallest service, the most β€” of the roughly 8,400 troops discharged, 3,717 were Marines. For the other services, 2,041 were discharged from the Navy, 1,841 from the Army, and 834 from the Air Force.

Republicans have long criticized these separations, arguing they were unnecessary and detrimental amid US military recruitment struggles. The military, however, maintained that the mandate was a lawful order essential to readiness and the well-being of the force.

Read the original article on Business Insider

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