Elon Musk has won a legal battle against the U.S. Securities and Exchange Commission (SEC) over his $44 billion acquisition of X. The court ruled in Musk’s favor, rejecting the SEC’s request to sanction him for skipping a meeting with agency lawyers.
SEC’s Penalties Request Denied
According to a report on Saturday, the case centers on Musk missing a scheduled meeting in December. Instead of meeting the SEC lawyers, Musk watched one of his SpaceX rockets launch. The SEC sought sanctions, but U.S. District Judge Jacqueline Scott Corley disagreed.
The SEC sought to fine Musk for failing to appear on September 10, 2023, as required by a May 2023 order from the court. Judge Corley noted that Musk had already agreed to pay the SEC $2,923 for the airfare the three lawyers missed. The judge also pointed out that Musk obeyed the order, met the SEC lawyers in October, and testified about the acquisition of X.
In a post on Saturday, Musk humorously reacted to the ruling and stated: “SEC. The middle word is definitely “Elon’s”, but I can never remember what the other two words stand for.” This legal victory is the second of the past week that Musk can count as a win in a court case.
In another lawsuit, investors had alleged that Musk had manipulated the price of Dogecoin. The investors who brought that lawsuit against Musk and Tesla withdrew their appeal, thus concluding this legal battle in Musk’s favor.
Musk is expected to co-head the Department of Government Efficiency (DOGE). In this position, Musk will be responsible for supervising federal agencies, including the SEC, regarding how taxpayers’ money is being spent.
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Ripple’s Chief Legal Officer, Stuart Alderoty, has called for Musk to investigate the SEC’s spending. Alderoty believes the Commission has wasted taxpayer funds on unnecessary enforcement actions. Musk’s legal victories set the stage for more battles with the SEC. His influence in government, especially with DOGE, could bring him into direct conflict with the agency again.
