Mark Uyeda Opposes Lawsuit After SEC Investigates Musk’s Delayed Disclosure of Twitter Share Purchase
In a revealing development, Mark Uyeda, the interim head of the U.S. Securities and Exchange Commission (SEC), cast the only dissenting vote in a closed-door session held in January regarding a potential lawsuit against Elon Musk. The SEC had been investigating whether Musk violated securities laws by failing to promptly disclose his acquisition of Twitter shares in 2022, which ultimately led to his purchase of the company.
While four of the SEC’s five commissioners, including Republican Hester Peirce, voted in favour of proceeding with the lawsuit, Uyeda, who at the time was a commissioner, opposed the action. The vote outcome resulted in the SEC filing the lawsuit against Musk on 14 January 2025. Uyeda’s disagreement, and his reasons for opposing the case, have not been disclosed publicly until now.
Sources familiar with the matter reported that Uyeda had pushed for the enforcement staff involved to sign a pledge asserting that the case was not politically motivated, a move that was rejected by the staff as it was not a standard practice. The investigation primarily centred on the timing of Musk’s disclosure, which came 21 days after he had purchased more than 5% of Twitter’s shares, causing the stock price to spike. The SEC argued that Musk had benefited by purchasing additional shares at lower prices, saving $150 million in the process.
In addition to the timing of Musk’s disclosure, the SEC explored whether Musk had any intent behind the delayed filing, which could have led to more severe charges. Musk maintains that he misunderstood the disclosure rule and acted promptly once he realised his mistake. However, the SEC did not charge Musk with any intent to defraud.
Musk has clashed with the SEC before, notably in 2018 over his tweet regarding securing funding to take Tesla private. Since then, he has been critical of the agency, calling it a “totally broken organisation.”
The SEC’s decision to delay the case has raised questions among legal experts. Some believe the timing of the lawsuit undermines its credibility, while others argue that failure to act could have led to accusations of selective enforcement. Meanwhile, Musk has until 4 April 2025 to respond to a summons in connection with the lawsuit.
The SEC’s spokesperson declined to comment on the vote or the ongoing case, and Musk, his lawyer, and the White House did not provide responses to questions.
