Elon Musk Faces Fresh SEC Lawsuit Over Twitter Buyout: Mark Uyeda Lone Vote Against

The U.S. Securities and Exchange Commission (SEC) has voted to pursue legal action against billionaire Elon Musk, further intensifying the regulatory clash over his acquisition of X. Reports indicate that the decision wasn’t unanimous, as Commissioner Mark Uyeda opposed the lawsuit while the remaining other four commissioners voted in favor.

The Dispute: Musk’s Refusal to Testify Again

The lawsuit primarily stems from Musk’s reported refusal to attend a follow-up testimony regarding his $44 billion Twitter acquisition in 2022. The SEC argues that Musk violated securities laws by failing to properly disclose his stock purchases prior to the buyout. Musk initially agreed to a September 2023 interview but later refused to testify again, claiming the SEC was harassing him.

According to the SEC, Musk’s rapid stock purchases combined with his public remarks raised red flags about potential market manipulation. The regulator emphasized that the testimony is necessary to clarify his intent and actions during the takeover.

A Split Within the SEC: Uyeda Opposes, Peirce Votes in Favor

While the SEC voted 4-1 in favor of the lawsuit, the internal divide among commissioners highlights the complexity of the case. Mark Uyeda was the only commissioner to oppose the legal action. In a significant move, Hester Peirce, recognized for her pro-crypto and libertarian views, voted in support of the lawsuit, signaling the seriousness of the SEC’s position. 

Uyeda’s opposition hints at concerns over the case’s merits or the SEC’s approach, although he has yet to make a public statement explaining his reasoning. Peirce’s support, on the other hand, indicates that even typically industry-friendly figures within the commission see grounds for pursuing Musk legally. 

Musk’s Response: Accusations of Government Overreach

Elon Musk has predictably responded with his usual defiance, accusing the SEC of conducting a “harassment campaign” against him. He argues that the agency is overstepping its authority and misusing its power to target him for political reasons.

Musk’s ongoing feud with the SEC stretches back years, with prior conflicts stemming from his infamous 2018 “funding secured” tweet about taking Tesla private. This latest lawsuit further escalates tensions, placing Musk once again in the agency’s crosshairs.

What’s Next? Legal Battle Looms Over Free Speech and Regulation

The case now heads to court, where Musk will face mounting legal challenges. His defense is expected to center around free speech rights, questioning the SEC’s authority to compel additional testimony when he has already participated in prior interviews.

However, the SEC remains firm in its stance, arguing that the case is essential to uphold transparency in the market and ensure that even the wealthiest individuals follow securities laws.

As the legal drama unfolds, the battle between Musk and the SEC could set a major precedent on how far regulators can go in pursuing high-profile figures over disclosure obligations. The outcome may have lasting implications for both financial markets and the broader debate over regulatory overreach in the U.S.