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SEC Legally Allowed To Continue Harassing Elon Musk, Does SoGary Gensler & co. are upping the ante to “insider trading.”

• Author:Jon Shazar
• Publish date:Feb 25, 2022

1000x2020, CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0>, via Wikimedia Commons

Gary Gensler & co. are upping the ante to “insider trading.”

As expected, a federal judge was not particularly impressed by Elon Musk’s sophisticated “the SEC are a bunch of meanies and I hate them” legal argument.

[U.S. District Judge Alison Nathan] said that Musk -- if he wanted to challenge a subpoena by the SEC -- would need to “have a non-frivolous basis” to do so and could file a motion to quash a subpoena, with a briefing to request “specific relief from the Court.”

On Musk’s allegation that the SEC had leaked information about a federal investigation to an un-named entity, the judge noted that his attorney’s letter to the court did not “contain specific facts or legal authority to justify” a request for “on-the-record assurance that the Commission has not leaked investigative details.”

And, so fortified, Gary Gensler & co. aren’t being shy about making the Tesla chief feel ever more harassed and aggrieved.

The Securities and Exchange Commission is investigating whether recent stock sales by Tesla Inc. Chief Executive Elon Musk and his brother, Kimbal Musk, violated insider-trading rules, according to people familiar with the matter…. Kimbal Musk sold 88,500 shares one day before the Tesla CEO tweeted about the potential sales of his own. The company’s shares fell sharply in the wake of Mr. Musk’s poll—58% of voters said he should sell—indicating the tweet was viewed as negative news.

SEC Probes Trading by Elon Musk and Brother in Wake of Tesla CEO’s Sales [WSJ]
Judge rejects Tesla CEO Elon Musk’s attempt to bring SEC before the court [CNBC]

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Tagsterms:Kimbal MuskSECinsider-tradinglawElon MuskTeslaFrivolityAlison NathanBy Jon Shazar

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