Back in December, Elon Musk accused the Securities and Exchange Commission (SEC) of launching a purely politically motivated probe into his Twitter purchase. In a letter from his lawyer, Alex Spiro, Musk alleged that the SEC gave him 48 hours to accept a settlement or face fraud charges. Musk refused to pay the fine, demanding to know "who directed these actions," suspecting either former SEC Chair Gary Gensler or Joe Biden's White House.
Once the SEC lawsuit was filed in January, Musk's condemnation of the settlement was echoed in his claims that the SEC was "totally broken." These comments seemed to further his feud with the agency following a contentious 2018 Tesla settlement over Musk's tweets that resulted in the Supreme Court declining to hear Musk's arguments against his tweets being monitored by the SEC.
But after Donald Trump issued a February executive order declaring sweeping powers over independent agencies—including the SEC, which was accused of launching politically motivated investigations—it appeared that Musk might instead have been setting up the narrative to possibly get the probe squashed.
And while that still appears to be a possibility, it now seems that a persistent lawsuit raised by Twitter investors that's linked to the SEC probe may end up being the hurdle that possibly blocks Musk's efforts to evade the SEC's investigation. And once again, it's perhaps Musk's tweets that may force the billionaire to potentially end up paying fines to settle charges—recently deemed plausibly showing intent to deceive.
On Friday, US District Judge Andrew L. Carter, Jr., gave Twitter investors a big win by mostly denying Musk's motion to dismiss. The judge agreed that it seemed plausible that Musk and other defendants concocted a scheme to spend "over $2.6 billion to secretly purchase over 70 million shares" at an artificially lower price. Plaintiffs had argued the scheme saved Musk "over $200 million" while allegedly harming investors whose shares could have sold at higher prices during the time the supposed scheme was in action.