Judge hands Trump ally a stinging rebuke in court (Musk willfully violated the securities laws).

[LetMyPeopleVote]

I am a corporate law/securities lawyer. It is well established law that one has to make a public report with the Securities and Exchange Commission when they have more than 5% of the stock of a public company. When one is doing a public takeover, you time the moment that you go over 5% carefully and after you cross that threshold, there is race to buy as much stock as possible.

Elon Musk ignore this statutory requirement. The court is right that Musk broke the law and has no excuse. By breaking the law, Musk admits that he save himself $150 million in the takeover of Twitter, Inc.

Judge hands Trump ally a stinging rebuke in court

www.rawstory.com/elon-musk-26...

— Eliz PhotoClique (@elizphotoclique.bsky.social) 2026-02-03T21:56:37.849Z

https://www.rawstory.com/elon-musk-2675076231/

One of President Donald Trump's most vocal allies received a stinging rebuke on Tuesday in a lawsuit against the president's Securities and Exchange Commission.

In a new order, Judge Sparkle L. Sooknanan of the District of Columbia dismissed a lawsuit filed by Elon Musk over his failure to disclose his ownership stake in Twitter before he officially acquired the company in 2022. Musk had filed a lawsuit challenging the constitutionality of the disclosure requirements. Sooknanan argued Musk was ignoring a "straightforward application of the law."

Sooknanan also said Musk didn't deny any of the charges the SEC levied against him. By ignoring disclosure rules, the SEC claimed Musk saved himself about $150 million in the Twitter purchase and caused "substantial economic harm" to investors by artificially keeping the stock price down.

In 2022, Elon Musk began acquiring large amounts of Twitter stock and quickly surpassed the SEC's disclosure requirements. Once someone reaches a 5% ownership stake in a publicly traded company, they must notify the agency and disclose certain information to the public.

Musk claimed the disclosure rules are unconstitutionally vague, forced him to speak against his will, and were being selectively applied against him. Sooknanan rejected all of his arguments.

This is NOT a close legal issue. So far this is a civil matter but I have seen people prosecuted for violation of the 13(d) requirement.

[QED]

1. Will anything happen to him?

Yeah, no. We know the answer, he'll skate as usual. Poor little rich boy victim of the big bad government rules.

I'm just so sick of this shit.

[LetMyPeopleVote]

2. The judge will fine him and the fine may be as high as $150 million

Musk cheated the public shareholders of at least $150 million by breaking the securities law.