Trump ghosts Musk, won’t back claims SEC lawsuit was political harassment

In a surprising turn of events, Donald Trump has not offered his support to Elon Musk in the ongoing legal battle against the Securities and Exchange Commission (SEC). A U.S. district judge revealed this week that Trump is not stepping in to assist Musk, who is facing serious allegations related to his 2022 acquisition of Twitter. The SEC, which filed the lawsuit during the final days of the Biden administration, is seeking a staggering $150 million in disgorgement, along with interest, civil penalties, and an injunction aimed at preventing Musk from future violations. The complaint claims that Musk acquired a 9% stake in Twitter without the requisite timely disclosures that would have informed other investors of a possible shift in company control. This alleged oversight reportedly allowed him to purchase over 70 million shares at an artificially reduced price, thereby inflicting significant economic damage on investors who sold their Twitter stock, some of whom have since filed separate lawsuits. Musk has previously asserted that the Biden administration pressured him to resolve the SEC lawsuit within 48 hours or face fraud charges. He has consistently argued that the SEC's actions represent selective enforcement against him as a political adversary. Furthermore, Musk contends that his rights to free speech are being violated by the SEC's demands for him to disclose his thoughts and intentions against his will. In Musk's view, he is uniquely targeted in a case where the SEC is pursuing disgorgement without proving any intentional wrongdoing. He has pointed out that typical disgorgement amounts in previous cases are usually below $200,000, making the $150 million sought by the SEC appear excessive. Despite speculation that the incoming Trump administration may intervene in the lawsuit, especially given Musk's status as a special government employee, reports indicate that the SEC's disclosure requirements are standard practice, complicating any efforts to dismiss the case swiftly. As the situation unfolds, it remains to be seen how this legal drama will impact both Musk and Trump in the coming months.